The crypto industry has had its fair share of ups and downs this year. 2018 started with the highest prices the market has ever seen, but this trend didn’t last for too long as the leading cryptocurrency soon started to enter a descending spiral.
There were moments in which most of us thought Bitcoin would recover again, but we were disappointed once again as November came with a hard bearish market. Bitcoin experienced loses of thousands of dollars in a few weeks, discouraging all crypto investors. Also, Ethereum’s long reign as the second-ranking crypto came to an end and many other altcoins just disappeared off the radar.
So yes, 2018 was rather disappointing overall for the crypto world. The markets are hovering at values that are lower than they have been in over a year and there it doesn’t seem like there will be any sudden increases in the last month.
But will 2019 come with good prospects, or will it bring even worse scenarios for our coins and tokens? In this article, we will be examining past, present and future predictions to see what the industry’s great leaders believe what will happen in the following year.
Can Market Moves Be Accurately Predicted?
Unfortunately, there is no straight answer which can be given to this question. The crypto market is prone to sharp fluctuations which can happen at any given moment. So naturally, not even the most experienced of traders and analysts can predict its movements with complete accuracy.
All forecasts are just based on certain patterns which recur on a certain basis and some key factors that can influence to some degree. Keep in mind that no matter how hard you try to predict every move of the market, you will most likely be wrong about most changes. The best approach would be to keep your eyes on major trends that have the potential of shifting the markets in order to avoid losing too much.
On the bright side, no one is really at an advantage here because everyone knows just as much as the next person about how the prices will develop.
Still, some predictions happened to come true, and in today’s article, we will be exploring the most notable ones in the crypto space.
Crypto market: Expectation vs Reality
There have been several instances in which leading names from the industry made some predictions regarding the crypto market in 2017 which turned out to be true.
The Bitcoin Price
Saxo Bank analyst Kay Van-Petersen said back in December 2016 that Bitcoin’s price would reach $2,000 in 2017. When he made his forecast, Bitcoin had a trading value of $900. The coin managed in reaching that value in May 2017. But he wasn’t the only one to have speculated correctly regarding BTC’s price. Don Tapscott, the co-founder of the Blockchain Research Institute, also made the same affirmation.
Of course, there have been many others that stated that Bitcoin will reach higher values by the end of this year. The same Kay Van-Petersen also stated that in December 2018 Bitcoin would reach a value of $100, 000. He stated that this growth would be due to more institutions and investors getting involved, thus boosting BTC’s worth. It should be mentioned that in previous statements he said that the $100,000 mark would require 10 years to be reached.
But Van-Petersen wasn’t the only one to place Bitcoin at such high values for December 2018. Forbes also expressed its beliefs that it will reach the same value. Jeet Singh, a cryptocurrency portfolio manager, believed that “bitcoin could definitely see $50,000 in 2018” although “we will probably go through a suffering period of volatility.”
Dan Morehead, Pantera Capital CEO speculated that Bitcoin would reach $20,000 by December 2018. Arthur Hayes, the co-founder and CEO of BitMEX, stated that a surge will lead BTC to a price of $ 50,000 by the end of this year.
Thomas Lee’s (co-founder of Fundstrat) predictions for December saw the coin peaking at $25,000. Michael Novogratz, the ex-hedge fund manager of Fortress, stated in 2017 that Bitcoin could reach $40,000 by the end of this year.
Needless to say that, the forecasts of Bitcoin reaching values of four zeros in December were all wrong.
The Crypto Market
In 2018 it was generally believed that the crypto market cap will see great increases as more blockchain projects will appear and the technology will see more development and adoption.
In spite of the many negative turns the market has had, many experts and analysts stayed positive regarding its future evolution. Even though blockchain has become more widespread in use in various industries this year, and more people have shown more interest in cryptos, the market still experienced heavy losses.
Also, many leading nations in the technological field have acknowledged the potential of this emergent technology. Many of them have launched or are thinking of creating their own cryptocurrencies. Several institutions were also pondering on getting involved in this aspect as well.
William Dudley, President and CEO of the Federal Reserve Bank of New York, publicly revealed last year that the institution was contemplating of launching its own virtual currency.
Estonia was also thinking last year of introducing its e-Residency program together with its very own crypto called Estcoin. Its e-Residency programme is one of the first government-led programs to save its own data on Blockchain. Estonia is widely regarded as being one of the most developed and innovative technological countries which are always seeking to implement the most cutting-edge innovations.
Riksbank, Sweden’s central bank is also interested in issuing its proprietary digital currency. The coin called eKrona has already been listed on CoinMarketCap, but it is still currently inactive since there are some processes that are still under development.
Certain banks in Japan have made plans of launching their own cryptocurrency called J Coin, which is scheduled to be released before the 2020 Tokyo Olympics. The crypto will be backed at a 1:1 ratio to the Yen. The cryptocurrency will be used as a payment for goods and services which can be used via smartphones.
It is also interesting that China, a country which has adopted a very radical stance against all things crypto, has already stared trails for its own coin, and Russia has also manifested an interest in Ethereum.
The biggest questions which plague the minds of crypto investors, traders and analysts are regarding the price and position of Bitcoin. Will it still be the number one coin in terms of price, transaction volume, and market cap in 2019?
Well, most will agree that Bitcoin will still be the crypto to rule them all, but the opinion regarding its increase is split, with some supporting that BTC will boast new highs, while others remain reserved.
The future price growth of Bitcoin or any other altcoin will be largely influenced by the regulations issued by governments regarding their legality, taxation, and what role they have in money laundering and other illegal financings.
One important prediction for 2019 comes from Wallet Investor, which believes that Bitcoin will hit a price of $36,000 by the end of the following year. Personal Loans forecasts that the number one coin will reach a whopping price of $207,000 USD at some time in 2019.
Wences Casares, a director at PayPal, makes a bold future price estimation of $1m which will happen in the next 5-10 years. Tech veteran John McAfee sees a less major increase in the next 3 year for Bitcoin, speculated that BTC will have a value of $500,000.
Dan Morehead, CEO of Pantera Capital, has expressed his belief that the crypto market could reach an estimated value of “$40 trln” in the following decade.
It is estimated that nearly 90% of all cryptocurrencies will die out. And this speculation is supported by the fact that almost 50% have already been declared dead. Almost 1000 out of the total of 2000 cryptocurrencies available have been declared either dead and/or scam.
The only cryptocurrencies which will remain standing will be those that have real value and use. As they will have fewer competitors and have already established themselves to have worth, they will continue to keep on growing both in terms of value and adoption.
So Will the Crypto Market Recover in 2019?
There is no one with the power to accurately telling what the future has in store for the crypto market. In spite of this grueling year, experts still keep a positive outlook for 2019 and believe it will bring significant development to the market, which will restore some of the sustained financial losses. Of course, 2019 will also not be spared of volatility and scam coins, so it is recommended that all traders practice due diligence when choosing a new crypto or enter a new investment.