If you’re a Bitcoin investor whose portfolio has just lost almost half its value, you’d be forgiven for feeling a wee bit pessimistic.
But cryptocurrency speculators can take heart from one analyst’s claim that Bitcoin will soar to a price of $100,000 in 2018.
Kay Van-Petersen, an analyst at Saxo Bank, said the world’s most famous virtual coin could increase in value by a factor of 10 this year.
Back in December 2016, he famously predicted Bitcoin would reach $2,000 in 2017 and was proven right when it stormed past this valuation in May and went on to achieve a peak of almost $20,000 in December.
He said the recent launch of Bitcoin futures exchanges which let people bet on its price movements could be a sign that big growth is on the way.
If the futures markets prove to be successful, it could smooth cryptocurrencies’ path into the mainstream.
‘First off, you could argue we have had a proper correction in bitcoin, it has had a 50 percent pull back at one point, which is healthy. But we have still not seen the full effect of the futures contracts,’ Van-Petersen told CNBC.
He suggested Bitcoin would ‘re-rate’ at an even higher price and added: ‘It’s kind of building a foundation, then will re-rate a bit higher.’
The market dip was prompted by fears that a global crypto clampdown is on the way.
Germany’s Bundesbank has called for global regulation of Bitcoin, while France’s finance minister wants tougher rules for cryptocurrencies.
Not everyone is quite so optimistic about Bitcoin and critics have been coming forward to bash it.
Last week, US billionaire Warren Buffett ruled out investing in cryptocurrencies, warning that the Bitcoin boom will ‘come to a bad ending’
Jamie Dimon, JP Morgan chief executive, famously called Bitcoin a ‘fraud’ and said he would fire employees trading the digital currency.