After making a recovery from $5,887 during the crash of mid-August to a high of almost $7,400 during the start of this month, bitcoin is again taking the downward road and is currently placed at a value of $6,410 at the time of writing, as per CoinMarketCap. Along with bitcoin, ethereum (ETH) is also heading the downward hill as of now.
In the mid of last month, we saw bitcoin hitting the lowest mark since June 2018 dropping below the value of $6,000. Along with this drop, the entire market capitalization by cryptocurrencies also dropped below the $200 billion mark. After recovering from the crash, the overall crypto market saw an increase in its total capitalization by floating above the $200 billion mark again. As of now, it is barely floating above the $200 billion mark.
The volatility and unpredictability in bitcoin’s price is unknown to none. One week we see it showing extreme bullish trend and a promising future, the very next week we see it going down by a huge amount. Stability is a word unknown to the world of bitcoin. So, where are headed moving forward from here on? Are we going to see it moving up from here hitting the $10,000 mark, or are we going to see it plummet down to the lows of $3,000? The possibilities of these outcomes depend upon a variety of factors that include establishment of official frameworks like crypto-linked exchange-traded funds (ETF) and platforms like Bakkt. The need of a regulatory framework is also holding cryptocurrencies from breaking the shackles that it currently faces in its growth.
If these steps are taken we will see the market getting more stable as institutional investment will be pouring in making it more attractive to the general public as well. As a result of this, we will most probably see bitcoin price going up the hill. If ETFs keep on getting rejected and there are no regulatory frameworks in place for monitoring fraudulent and illegal practices, the prices are most likely to stay unstable.
According to Thomas Power, a famous crypto enthusiast, the predicted price range for bitcoin this year is $3,000 to $10,000. If things go well for the digital giant, it might see a high of $10,000, if they do not, we might even see it plummet down to a low of $3,000.
According to Alexis Ohanian, the co-founder of Reddit and the VC of the venture capital firm Initialized Capital, bitcoin will likely see a high price range of $20,000 by the end of this year. Some while ago, Alexis stated that:
At the end of the year, Bitcoin will be at $20,000. And Ethereum will be at $15,000 [which he later clarified as $1,500]. Great, now people can call me out if I’m wrong.
Now, speculations are circulating regarding bitcoin’s price by the end of this year for quite some time now, where we will actually see it cannot be told precisely as of now. $3,000, $10,000 and $20,000, these are all predictions made by the crypto enthusiasts. Where we will truly see it stand by the end of this year still remains to be a question to be answered.