Cryptocurrencies have come a long way, with bitcoin rising from a few cents to its 2017 highs of $20,000. This price pump brought in lots of optimistic investors into the crypto market, but it quickly turned into a disappointment.
That’s because the prices of bitcoin and other cryptos have been everything but glamorous in the last 6 months. Prices have dropped so hard that many have been left holding bags of losses up to 70% of their portfolio valuations. Google searches for cryptos have dropped too, with bitcoin searches hitting their lowest in June.
However, recent developments point to a bright future for crypto. A few days ago, the U.S congress said something to the effect that digital currencies are the future of money.
Coinbase, one of the largest exchanges in world has also developed a custodial service for institutional investors, and is now a registered broker-dealer. The CBOE is also awaiting approval from the SEC for it to launch a bitcoin ETF.
All these developments point to a future where cryptocurrencies will be a mainstay in the global order. Bitcoin being the top crypto, looks set to lead the way in this decentralized future. So what’s the likely price of bitcoin (BTC) in the next 2 years?
The best way to do a prediction is to use an investment prediction calculator, while factoring the global macro-environment economic environment. Macro factors include government action, as well as the prices of other asset classes.
For instance, crypto prices will be correlated to commodity prices in the future, especially now that bitcoin is shaping up as digital gold. As such to try and predict the price of bitcoin in the next 5 years, it would make sense to also do a gold price prediction next 5 years or thereabouts.
Bitcoin Price Prediction 2020
Let’s now focus on Bitcoin (BTC) and try and determine its price in the 2020s and beyond. By the year 2020, bitcoin could easily be trading at over $100,000. There are a number of factors that support this.
The most important one is the increased interest in crypto by institutional investors. At the moment, the infrastructure is being setup for institutional investors to get into this market.
It started with the futures markets, followed by custodial services, and now the ETFs. Once the infrastructure is complete, big players such as pension funds will enter into this market, and it will drive up the price of Bitcoin by a huge margin. This surge could start as early as this year, which means that a bitcoin price prediction of $100k could happen even before 2019.
Ether Price Prediction 2020
Another crypto that has some good chances for growth going into the 2020s is Ethereum (ETH). Like bitcoin, Ethereum has some good fundamentals supporting it and that could well see it rise to over $5000 in the next 5 years.
To contextualize this figure, we need to understand that the reason Ethereum shot up in 2017 was due to an explosion of ICOs.
This was quickly followed by a series of ICO bans mainly in China, South Korea and the U.S. These bans led to the collapse of the price of Ethereum back to the $300 – $500 level.
However, these countries are now warming up to ICOs. The South Korean parliament for example is looking to legalize initial coin offerings.
China too is taking similar steps, while the U.S is moving in that direction by awarding broker licenses to companies like Coinbase. Once ICOs become regulated, their growth will be exponential and could hit over $100 billion by the year 2020. This will drive up Ethereum (ETH) and see it hit a valuation of $5000. It’s very possible considering that it got to over $1000, when ICOs were new to the market, and ICOs were unregulated.
Fundamentals Look Good
For someone looking to put their money into Bitcoin or Ethereum, now is the best time to invest. The fundamentals, as well as the macro-economic environment all point to a future where their prices will be multiples of what they are today.
In summary, Ethereum price prediction 2020 is a minimum of $5000, while Bitcoin price prediction 2020 is roughly $100k. One can also use these predictions to try and determine the future price of other cryptos in the market.
One crypto that one can try and predict its future value on the basis of the price of bitcoin is Litecoin (LTC). As you might know, the rest of the market tends to move in tandem with that of Bitcoin. Therefore, if bitcoin (BTC) hits $100k, we can extrapolate that to try and predict the price of Litecoin in 2020.
A simple calculation puts Litecoin price prediction 2020 at $1500 a coin. Of course it could be higher when you factor in the upcoming Litecoin halving in 2019, which will increase the mining difficulty, and cut on the supply.