Will We See a $1,000 Bitcoin in 2016? Analysts Suggest Yes
Will bitcoin prices surpass $1,000? They should in the near future, according to several market experts.
As 2016 draws to a close, bitcoin prices continue to show strong, upward movement.
At press time, bitcoin was up nearly 5% for the day's trading, capping off a seven-day period in which it saw 20% gains.
Should bitcoin prices breach $1,000 (the first time since January 2014), the digital currency could benefit from a handful of new tailwinds. The simple act of rising above $1,000, analysts say, is likely to generate greater visibility and therefore a flow of new money into bitcoin.
Surpassing $1,000 could also make this price a new support level.
Should bitcoin fall back after surpassing this point, the decline could motivate market participants to step in and buy the currency, thereby setting a price floor at $1,000.
But bitcoin prices will reach $1,000 soon enough, according to cryptocurrency hedge fund manager Tim Enneking, who told CoinDesk he expects the digital currency will start out 2017 at this price.
Enneking emphasized the importance of a "Santa Claus Rally" in 2016, meaning bitcoin's gains before and after Christmas.
Arthur Hayes, co-founder and CEO of exchange firm BitMEX, provided an almost identical prediction
"I am calling for $1,000 to be breached by the 31st of December 2016. The price corrected to $860 and was back above $900 in one day. That is a very healthy pullback," he told CoinDesk, adding:
In an opinion piece issued yesterday, investor Vinny Lingham suggested the same, stopping short of any year-end price predictions but issuing a rosy 2017 projection.
"I expect to be within the $3,000 range by the end of next year, as I have previously forecast," he wrote.
Still, not everyone was convinced they could make a call.
Cryptocurrency fund trader Jacob Eliosoff emphasized that he believes the bitcoin and ether markets are likely to correlate through the year's end. While he acknowledged bitcoin is likely to pass $1,000, he didn't rule out that another cryptocurrency could attract attention through stronger gains.
In particular, he suggested a strong rise in long struggling ether prices, as an example, may be enough to move the market's attention elsewhere.
Further, he emphasized that "no one should bet too much on timed predictions" when it comes to cryptocurrencies.
Kid on trampoline image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.