Bitcoin could be set for a year-end bump in value due to the holiday season, according to the CEO of Caleb and Brown.
The Australia-based crypto brokerage expects the world’s most valuable digital currency to leap in value to almost $7,500 after dipping below $3,600 on Sunday.
“Bitcoin is very much a social phenomenon, which tends to be a trending topic as families and friends gather over the holidays in Q4 each year,” CEO Dr. Prash Puspanathan told CryptoTechNews.
“As a three-month estimate, we anticipate that there’s a good chance of it reaching $7,400, while the 12-month price direction is less clear as general sentiment is still bearish.”
The third quarter of 2018 was a wild ride for short-term investors as Bitcoin rose from around $8,000 in late June to almost $12,000 in July before falling to around $9,000 by the end of September.
Its value has since fallen off a cliff and currently stands at just over $4,000 after gaining almost $200 on Wednesday.
However Dr. Prash says market volatility has actually been comparatively low recently, especially when viewed against the all-time peak of almost $20,000 in February.
“Sixty-day price volatility on Bitcoin is down to just four per cent, which we haven’t seen for two years – since October 2016. It is significantly lower than the 42 per cent peak in February this year,” he said.
However Vinny Lingham, CEO of blockchain-based identity service Civic, told CNBC that a ‘crypto winter’ is coming.
“I think it stays in the range between $3,000 to $5,000 at least for three to six months,” he said. “I think there is a lot of buying in the short-term around that [$3,000] mark.
“If we don’t get out of the crypto bear market cycle in the next three or six months, the $3,000 level could go.”