/Bitcoin Predictions For Summer 2017

Bitcoin Predictions For Summer 2017

Bitcoin just hit my target of over $2,000 from two months ago…

There’s also a lot of action in other cryptocurrencies and altcoins too, especially Litecoin, Ethereum and Ripple.

So what’s going to happen next, and what are the best altcoins to trade?

In my opinion now is the best time to be in these markets. I’ve never seen anything like this in my 15 years of trading financial markets.

Buy Bitcoin, Ethereum and Litecoin – CoinBase

I don’t know where the price of Bitcoin’s going to be in a year. There are some big risks with cryptocurrencies, and trading them isn’t right for everybody. But I can say this with 100% certainty — decentralized digital currencies, or crytpocurrencies are here to stay. This isn’t a passing fad. They are already changing the world in ways that many people in the West don’t feel yet because we have access to a legacy banking system that makes us feel “comfortable” at the moment.

Currency competition is one of the best things to happen to capitalism and entrepreneurship this century. For example, it’s giving entrepreneurs in third world countries a way to take control over their finances and break the cycle of poverty. A guy in India who was destined to be a fisherman his whole life can now get on the internet and use cryptocurrencies to immediately (and without government permission) start accepting payment for products and services from anyone around the world!

Okay enough about the big picture, what about the next few months during this summer of 2017.

Bitcoin over $3,000 by the end of summer

We are at around $2,300 at the time of writing after a run up from $1,000 at the beginning of the year. I don’t think we will see this 100% increase again before the end of summer, but we could easily see a run up to $3,000.

I believe that a combination of price analysis and fundamental analysis is the most appropriate way to come up with a legitimate bitcoin forecast.

Fundamentally, the bitcoin usage data look great: Usage of bitcoins keeps on increasing, and that is exactly what it fundamentally is all about. Because of the fact that bitcoin is a form of money, the widening acceptance of bitcoin is the most fundamental data point to consider.

According to Statista, bitcoin usage keeps on growing as seen by the number of Bitcoin ATMs, which increased from 538 in January 2016 to 838 by November. Most Bitcoin ATMs, as of July 2016, were located in the United States (345) and Canada (108). The Bitcoin ATMs located in Europe as of June 2016 constituted 24.02 percent of the global ATM market share.

Moreover, several bitcoin charts confirm a growing usage and acceptance:

  • Bitcoins in circulation rose 10% in the last 12 months.
  • Trading volume on major bitcoin exchanges is structurally higher in the last 12 months.
  • The average number of transactions per block is structurally higher in the last 12 months.

Last but not least, this research paper on bitcoin’s big picture trends identifies 3 marked regimes that have evolved as the bitcoin economy has grown and matured: From an early prototype stage, to a second growth stage populated in large part with “sin” enterprise (i.e., gambling, black markets), to a third stage marked by a sharp progression away from “sin” and toward legitimate enterprises.

Japan recognised Bitcoin as a currency on the 1st April this year, and demand both in Japan and South Korea has exploded, with a price premium of over $400 being paid on Japanes and Korean exchanges. The price in South Korea actually hit over $4,000 at one point in May. Many Japanese businesses and shops now accept Bitcoin.

In other words, fundamentally, the picture for bitcoin looks very good. This is not only a market for speculators anymore, but one of real users. I am confident, based on the objective data set outlined above that bitcoin’s price rise is not only legitimate, but will continue. That results in a bullish bitcoin price forecast for 2017 and beyond.