Bitcoin Tipped to Break Back Through the $10,000 Barrier

bitcoin coin

Martin Green

Monday, May 14, 2018 1:39 PM UTC

Monday, May. 14, 2018 1:39 PM UTC

Bitcoin has been treading water for the past couple of weeks, but the hype surrounded Blockchain Week New York could be the catalyst for growth.

Blockchain Week New York is now underway and experts believe the hype surrounded the event could push the cryptocurrency back above the $10,000 mark. It hit a recent high of $9,479, but then that dipped to $8,226 before rallying and surging back above $8,500 in the past few weeks. After strong gains in April, Bitcoin has been treading water, but surging back above the $10,000 barrier would be a big psychological landmark for its advocates. It reached a low of $5,947.40 in February and many wrote off its chances of future success, but it has since displayed its resilience, and many commentators are bullish as they look ahead.

“It's sky-rocketing,” said cybersecurity pioneer and investor John McAfee. “It’s not going to disappear. It can't possibly go to zero. It can only grow as the user base grows.” Michael Novogratz, chief executive at Galaxy Digital Capital Management, went so far as to claim it is almost irresponsible not to invest in Bitcoin. “It’s almost essential for every investor to have at least 1% to 2% of their portfolio in crypto,” said the billionaire.

Novogratz’s firm has teamed up with Bloomberg to launch the Bloomberg Galaxy Crypto Index, an index of the top 10 global cryptocurrencies weighted by market capitalization, and this is a move that further legitimizes Bitcoin investment as an accepted mainstream pursuit. “Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies,” said Alan Campbell, global product manager for Bloomberg Indices. “The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”

New York City’s Bitcoin Week runs until May 17. The event is launched in partnership with Coindesk and the New York City Economic Development Corporation, and it is expected to draw 8,000 attendees. The coverage and excitement it generates could be enough to push it back above the $10,000 barrier, and that would represent a victory for Bitcoin bulls.

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CRYPTO: Our quant/data scientist @fundstratQuant publishing #bitcoin mining white paper. Crypto mining economics lead/explain $BTC price—suggests $39,000 per bitcoin by YE19. key takeaways below... pic.twitter.com/f5ZQ4py3jS

— Thomas Lee (@fundstrat) May 10, 2018
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Processing power continues to increase and that allows computers to solve Bitcoin-creating equations in a more efficient manner. Sam Doctor, head of data science research at Fundstrat, said: “We believe the current path of hash power growth supports a Bitcoin price of about $36,000 by 2019 year end, with a $20,000-$64,000 range.”

The recent decline has largely been driven by South Korea, where authorities raided UPbit, the nation’s largest digital currency exchange, as they investigated fraud. That sort of turbulence creates shockwaves globally, but cryptocurrencies have been pretty resilient. But McAfee believes there is nothing the authorities, even the US government, can do to halt Bitcoin. “Congress can make all the laws it wants. Obviously, they can outlaw Bitcoin,” he said. “You are assuming there is a possibility of enforcing those laws. You cannot stop a distributed system that is worldwide. There is no law that you can make. When exchanges were centralized, you could shut down an exchange. You can't do it anymore. They have now decentralized the exchanges. How will you enforce these magical laws that Congress is going to make?”

The bulls remain bullish and Bitcoin and altcoins continue to fight off everything thrown at them, which spells good news for sports bettors who are taking advantage of the speed, anonymity and ease of use when wagering online. But it is never going to convince everyone, and former PayPal chief executive Bill Harris recently explained why he thinks why bitcoin is the “greatest scam in history”. He said: “In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen. In a pump-and-dump game, promoters pump up the price of a security creating a speculative frenzy, then dump some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds.”

Those sort of comments are always likely to hurt prices, and it also provides a stark warning about long-term Bitcoin investment. For that reason, the enduring advice remains the same: bet using Bitcoin but change your winnings back quickly into a stable currency like the dollar to cover yourself.

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