Bitcoin, the largest virtual currency in the market could reach $2,500 dollars in the near future. This is what Stephen Innes, OANDA Asia Pacific Head of Trading says. During a conversation with Bloomberg on November 26, he explained that $2,500 is the target he has for Bitcoin by January 2019.
During 2018, Bitcoin and other virtual currencies have been in a bear market that affected the whole crypto and blockchain space. Bitcoin reached $20,000 dollars back a the end of 2017 and lost around 80% of its value in less than a year. Other virtual currencies experienced even a larger drop of 95% or more.
He explained that the virtual currency market has been falling during this year and that there are no signs to be bottoming. Moreover, he said that no investor would like to catch this ‘falling knife.’ For him, there is more room to go down for the market.
Nevertheless, he mentioned that he is not negative about the future of blockchain technology or the crypto space. He said that he is not sure about where coins are headed in such a market.
He said about this:
“You know it’s a bit of a wild west show out here in crypto lands, that’s for sure, so we have to be a bit guarded. Looking at some of these metrics, basically [there’s] unquantified risk. [And] what I’m really looking at is the way coins have been trading in the past few months, and it’s indicative that the [Bitcoin] bottom isn’t in.”
Innes said that one of the main catalysts for Bitcoin’s price to fall under $6,000 was related to the Bitcoin Cash (BCH) network upgrade that started on November 15. Moreover, he explained that there were two more reasons for cryptocurrencies to continue falling.
The first reason he gave is related to the fact that institutional investors showed that they were not interested in the market. However, there is a big contrast with what he says and what is happening in the market. There are several firms working in order to meet institutional demand.
The second issue he mentioned is the uncertainty around the regulatory framework. He said that there are several hard forks taking place in the space, hacks and other attacks that are clearly influencing the market to keep falling.
Innes explained that there is a possibility for gold to be benefited if virtual currencies go down to zero.
There are some other analysts that believe that Bitcoin could continue falling even under $2,000 dollars in some cases. Bloomberg Intelligence says that the price of the most popular virtual currency could continue falling in the near future.