CRYPTOCURRENCIES LATEST NEWS: Wall Street analyst predicts wide fluctuations of bitcoin in 2018
Leading analyst of Wall Street, engaged in crypto-currencies and co-founder of the New York research company DataTrek Nick Colas (Nick Colas) argues that bitcoin is potentially capable of strong bi-directional movements in 2018, with price fluctuations between $ 6,500 and $ 22,000.
Kolas, who has been following Bitcoin for as little as four years, sees no trouble in the volatility of the cryptocurrency in 2018, as "it is difficult to assess the cryptocurrency, and their economic benefits depend on use cases that are not yet built." According to him, the average price of about $ 14,000 is a reasonable price for the flagship cryptocurrency next year.
"A bitcoin can go up to $ 22,000 or slip down to $ 6,500, and that will also be a reasonable price. We expect to see both figures in 2018, " he said.
Along with fluctuations in prices, Kolas says that the market capitalization of bitcoin has declined throughout the year since altcoyins are able to further reduce its dominance.
This year, the dominance of bitcoin by capitalization declined from 87% to 44.2%. Although it exceeds $ 256 billion, there are now 35 crypto-currencies with a market capitalization of more than $ 1 billion.
To confirm his conclusions, Kolas compared the number of bitcoins with an amount of $ 100 in circulation. Following his thought, if the cost of bitcoin was 10% of the total amount of $ 100 in circulation, its price was about 6500 dollars. If we raise it to 33%, we get a mark of 22 000 dollars. The resulting average between the high and low is $ 14,035, which is not too far from the current price of bitcoin.
The only way that could significantly increase the price of bitcoin in his opinion is the large-scale use of bitcoin by business.
