Is this the year Bitcoin goes ‘Boom’ ? According to a recent CNBC report, Bitcoin could hit $3,000 by years end.
The price of bitcoin could hit $3,000 by the end of the year after recently trading above gold and hitting a fresh record high, an analyst told CNBC on Tuesday.
A rise on this scale would represent a near 150 percent increase from bitcoin’s current price of $1,204 at the time of publication, and a more than 130 percent increase from the fresh $1293.47 high it set last week, according to CoinDesk data.
The price of bitcoin at time of publication is not trading above an ounce of gold, but the recent rise in price, which is up 195 percent in the past 12 months, has been attributed to a number of geopolitical and broader market factors.
Increased regulation from Chinese authorities to clamp down on money laundering
Demonetization in India which has caused bitcoin to be seen as an alternative store of value
Volatility in other currencies and uncertainty in the global economy
Now Adam Davies, a consultant at Altus Consulting, who works with large financial institutions on technology, is predicting bitcoin can go even higher.
“In terms of price this year, I think it will go up to $3,000. As it becomes more pervasive and more generally accepted, I think you’ll see rapid growth in adoption,” Davies told CNBC in an interview on Tuesday.
Bitcoin is under attack in China. According to this Business Insider report, the three largest exchanges are blocking all withdrawals.
Bitcoin trades down 2.4% at $1198 a coin as selling takes hold for a second day. Wednesday’s weakness comes after China’s three largest bitcoin exchanges (OkCoin, Huobi, and BTCC) all issued statements saying they will continue to block withdrawals until granted approval to let them resume by regulators, according to Cryptocoins News.
The cryptocurrency plunged more than $100 in a matter of minutes on Tuesday about two hours after a Bloomberg headline cited a People’s Bank of China official as suggesting the recent bitcoin regulation wasn’t temporary.
It’s a historic day for Bitcoin as the virtual currency has surpassed the price of gold according to this Market Watch report.
One unit of so-called digital gold is now worth more than an ounce of the real thing.
The price of a single bitcoin US:BTCUSD rose to an all-time high of $1,251.32 on Thursday, surpassing the price of a single ounce of gold, according to CoinDesk’s bitcoin price index. Bitcoin traded on certain Chinese exchanges briefly overtook gold in early February. But this is the first time in the digital currency’s eight-year history that it has done so according to most widely used bitcoin-price benchmarks.
Many bitcoin watchers, including Charles Hayter, chief executive officer and founder of CryptoCompare, a company that provides data and analytics about digital currencies, have pointed out that bitcoin has a positive correlation with gold. They argue that investors are becoming more comfortable with the digital currency, making them more willing to buy it when more conventional markets like stocks are under duress.