Recent fluctuations in bitcoin’s valuation have given many investors worried pause about the cryptocurrency’s fate; despite some predictions that 2018 would be bitcoin’s year, the world’s most popular encrypted digital asset has been putting forward lackluster results. There’s still plenty of time left before the end of this year, however, and some industry analysts are still nursing hopes that bitcoin could reach $50,000 or more.
Will bitcoin really attain such an astonishing valuation by the end of this year? A deep dive into the cryptocurrency’s recent performance can give us a hint as to how it will perform in the near future.
Another Disappointing Plummet
A recent plummeting of Bitcoin’s value had many investors worried for good reasons; the cryptocurrency saw its value slump by more than 5 percent in a mere 12 hours. The market was soon inundated with headlines about how bitcoin’s price was tanking, and everyone’s fears were aroused about the long-term value of the digital asset. Bitcoin loyalist have remained fiercely dedicated to their horse in the race, however, and some are drawing eyebrows with impressive predictions about bitcoin’s performance by the end of this year.
Take the recent market murmurings surrounding the $50,000 mark, for instance. Some experts recently intoned that bitcoin could see a huge upswing in its performance that could launch the cryptocurrency far beyond any valuation it’s ever attained before. Some analysts even predict that the broader cryptocurrency market could hit $1 trillion this year, especially if bitcoin, the industry’s poster boy, fares well. Such a mammoth achievement would be unlike anything we’ve seen from Bitcoin recently, however, and most are loudly dismissive of claims exceeding the $50,000 range.
If the cryptocurrency really were to hit $50,000 in the next few months, for instance, it would have to enjoy a surge in valuation that would see it more than double its existing record. Bitcoin’s historic 2017 price run illustrates that the cryptocurrency is certainly no stranger to wild fluctuations that benefit it at least as often as they harm it, but it’s a large stretch of the imagination to say that it could soar to the Olympic heights of $50,000 in but a few months’ time.
Doubtlessly attributing to Bitcoin’s valuation struggle is the fact that central banking authorities around the world have been lukewarm about the cryptocurrency. Many established professionals in the financial world continue to mock cryptocurrencies despite knowing little of them, unfairly hammering their values and diminishing their potential on the basis of hearsay.
It’s A Long Road To $50,000
To say that bitcoin has a herculean task before it in order to reach $50,000 in valuation would be the understatement of the year. While the world’s leading cryptocurrency derives its lofty valuation at least in part thanks to its celebrity, even bitcoin can’t ride the public hype surrounding today’s digital assets all the way to the $50,000 range before the end of 2018. The cryptocurrency market will obviously continue to grow at an exponential rate. And bitcoin probably won’t surprise us all with a 180 turn in performance in the next few months.
If central banks and international monetary authorities warm to the notion of embracing cryptocurrencies, however, bitcoin could face virtually limitless gains in the long-term. In the short-term, bitcoin will continue to suffer from a volatile valuation that regularly plummets on the basis of misleading headlines, but as more investors flock to cryptocurrencies, the world’s most popular and well-known brand of encrypted digital money will continue to accrue fans. Still, proponents of Bitcoin damage the long-term case for the assets value with relatively unfounded claims of hitting the $50,000 mark seemingly overnight.
Before bitcoin can reap the rewards of being the largest cryptocurrency on the market in the long-term, however, it must continue to vie for its place at the top of the dogpile. Other rising digital assets will try to steal bitcoin’s thunder, and future declines in bitcoin’s valuation will be eagerly seized upon by its critics who want to see it flounder in the market. Still, investors shouldn’t be too concerned, especially since Bitcoin’s valuation has shrugged off the myriad of attacks leveled at it for years now without much trouble. Despite the astonishing journey bitcoin’s valuation has taken in recent years, it’s very unlikely the world’s leading cryptocurrency will hit the $50,000 mark by the end of 2018. Despite expectations that the cryptocurrency market will continue to swell with growth in the near-future, the present volatility and bad press buffeting bitcoin’s valuation will almost certainly prevent it from meaningful gains above the $50,000 mark anytime soon. Bitcoin will assuredly continue to rise, however, as the cryptocurrency has already proven that its slow and steady lurching towards the mainstream is all but inevitable.