bitcoin price prediction

Comprehensive Analysis Predicts Bitcoin Price Near $20K This Year, $398K by 2030

A new, comprehensive analysis has predicted the price of bitcoin to reach almost $20K this year and will keep rising to almost $400K by 2030. The researchers have also predicted the future prices of several other major cryptocurrencies, including bitcoin cash, ethereum, and litecoin.

New Bitcoin Price Forecast

The June edition of the Crypto Research Report (CRR) reveals price predictions for several cryptocurrencies: bitcoin, bitcoin cash, ethereum, litecoin, and stellar. This is the 10th publication of the CRR report and it covers a popular valuation method used to forecast bitcoin’s future price called the “equation of exchange” model.

“The equation of exchange model is an absolute approach to valuing crypto assets,” the report begins. “This means that the model gives a target price that crypto assets should be priced at based on assumptions regarding changes in supply and demand.” Noting that “The absolute valuation approach is inspired by Mill’s equation of exchange, later formulated by Irving Fisher,” the CRR team detailed:

In this model, the percentage of the total addressable market (TAM) can be used to estimate a crypto asset’s implied future price.

After examining “all the variables and addressable markets,” the CRR researchers arrived at future price estimates for BTC, ETH, LTC, BCH, and XLM. They expect the price of bitcoin to rise to $19,044 in 2020, $341,000 in 2025, and $397,727 in 2030. Ethereum’s price is expected to reach $331, $3,549, and $3,644 respectively while bitcoin cash’s price should climb to $414, $6,690, and $13,016 during the same time periods.

The target addressable market for all cryptocurrencies today is approximately $212 trillion, the report notes. It includes unit of account and medium of exchange, consumer loans, offshore accounts, reserve currency, store of value, online transactions, remittance, micropayments, unbanked, gaming, crypto trading, ICO funding, and STO funding. The largest use case for cryptocurrencies is as a medium of exchange, the CRR research team found, elaborating:

We believe that bitcoin is still at the very start of its adoption curve. The price of $7,200 at the end of 2019 suggests that bitcoin has penetrated less than 0.44% of its total addressable markets. If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.

The CRR analysis estimates that there are more than 40 million cryptocurrency users globally, and the number of crypto users in a country is positively correlated to the country’s GDP per capita. High GDP means more cryptocurrency adoption in the country.

Furthermore, “On-chain velocity for most coins is decreasing, while off-chain velocity is increasing, currently at an all-time high,” the report highlights, discussing in-depth how speculation and savings outpace all other uses of cryptocurrencies. They provided “evidence that growth in speculative transactions on exchanges is faster than the growth in using cryptocurrencies to buy goods and services.” The full Crypto Research Report can be found here.

What do you think about this price prediction? Let us know in the comments section below.

The post Comprehensive Analysis Predicts Bitcoin Price Near $20K This Year, $398K by 2030 appeared first on Bitcoin News.

This article was originally published by 8btc and written by Lylian Teng.

Zhao Dong, one of China’s most influential bitcoin billionaires and a well-known over-the-counter (OTC) trader, said that he thinks the cryptocurrency market is poised to take off within the next three months.

Known as a shareholder of cryptocurrency exchange Bitfinex and the founder of crypto lending platform RenrenBit, Zhao recently took to Weibo (China’s equivalent to Twitter) to give a prediction about the crypto market.

“The next three months could be the last opportunity for bottom fishers, and after that, the crypto market will enter Spring and then Summer, estimated to rally together with China’s stock market in 2021,” he wrote. “There’s always ups and downs, just like the cycle of the seasons.”

In November 2018, the bitcoin tycoon presented his theory that the bitcoin market has four seasons for the first time, claiming, “we’re now still in the autumn time of bitcoin, next year (2019) would be the winter.”

Bitcoin surprised its investors after unexpectedly tripling in price in less than three months, from $4,000 at the start of April 2019 to over $13,000 in late June 2019. The price then stayed sideways, hovering around the $10,000 level from July 2019 to September 2019, Zhao expressed his view that bitcoin might see a big drop in the next three months before the beginning of 2020.

Many cryptocurrency investors have deemed Zhao a legendary figure after learning about his experience in the space. Zhao entered the bitcoin market in 2013 with 10 million yuan of initial investment, and soon that 10 million yuan brought him 100 million yuan amid the bitcoin price pump that year. Overoptimism and misjudgement quickly led him to open heavily leveraged positions and, as a result, Zhao found himself 60 million yuan indebted after losing 9,000 BTC in a single day (February 10, 2014). He once thought of killing himself but managed to pay back all of the debts within two and a half years.

This veteran investor is not the only one who is confident about the anticipated bitcoin rally in 2020, when the “bitcoin halving” will happen. Cybersecurity expert John McAfee said in July 2017 that 1 BTC would be worth $500,000 by the end of 2020, and, in his latest tweet, he claims that “it is mathematically impossible for bitcoin to be less than $1 million by the end of 2020.” Tom Lee, co-founder of investment advisor Fundstrat, believed that the price of bitcoin would be valued at $91,000 in 2020.

The post Bitcoin Billionaires Predict Price Spikes in 2020 appeared first on Bitcoin Magazine.