Why Bitcoin’s value cannot drop below $3k
A cryptocurrency expert says the market bottom for Bitcoin is around $3,000 while another believes it could rise to $10k by the end of the year.
The world’s leading cryptocurrency hit highs of almost $20k last December yet its value has dropped off a cliff in 2018.
Amid volatile conditions for all digital currencies caused by uncertainty over regulation, barriers to entry and a rise in Initial Coin Offering scams, Bitcoin has fallen to $6,391 at the time of writing – but is capable of rising and falling hundreds of dollars in just an hour or two of trading.
There remain many people who believe in the power of crypto and its underlying blockchain technology to change the world and who steadfastly hang on to their coins even as the financial regulators threaten to come down hard.
Asked whether they could see their Bitcoins drop in worth to lows of $3k, Kevin Murcko told the Express that it couldn’t fall any further than that.
“[Bitcoin] mining carries a cost, and large-scale miners won’t sell below that cost,” the CEO of crypto exchange CoinMetro said.
“Bitcoin mining is currently profitable down to a price of about $3,000 per Bitcoin so that price represents an approximate market bottom.”
He said more real-world use cases for the tech would be needed to drive its value. That is something which Digital Securities Exchange CEO Mike Rymanov says could actually be helped by increased regulation.
“Over the coming months, I expect we’ll see the market continue to attract more professional players which will subsequently lead to much more civilised market conditions, and in my opinion, there still remains a real possibility of hitting the £10,000 mark by the end of the year,” he told the Express.
“Furthermore, we expect other financial institutions will continue to look for ways to provide robust custody solutions for cryptocurrencies. Once these come into play, those investors who are currently sceptical or who have security concerns will be able to invest securely.
“In the medium-to-long term, it’s likely this will add to the consistently upward trend as we head towards £20,000; however when, and if, we reach that point is difficult to predict.”
Flick through our interactive digital magazine