Oanda Sees Bitcoin Hitting $2,500, Others Beg to Differ
As bitcoin hits a 14-month low, market commentator from U.S.-based foreign exchange Oanda, Stephen Innes, forecasts the sell-off will only intensify in the coming months. Innes predicts bitcoin will drop to $2,500 USD by January 2019. On the other hand, crypto bulls see the recent skid in bitcoin value as a sign of an approaching bottom.
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Crypto Market Plummets
The overall valuation of the cryptocurrency market has lost $700 billion–a decline of over 83 percent since peaking in early January. The crypto market value has tanked to $140 billion amid a brutal cryptocurrency sell-off across the board, triggered by the bitcoin cash hard fork and increased regulatory scrutiny. Even bitcoin, the largest cryptocurrency by market cap, has hit a 14-month low, now changing hands at $4,340.
Despite the market losing over 80 percent of its value, Stephen Innes, head of trading for the Asia Pacific at U.S.-based foreign exchange Oanda, predicts bitcoin will continue to descend, falling to $2,500 by January:
“There’s still a lot of people in this game. [If Bitcoin] collapses, if we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits.”
However, Innes’ short-term prediction has bitcoin fluctuating between $3,500 and $6,500.
Flight to Gold Imminent, According to Oanda
While the cryptocurrency market has witnessed devastating losses in the past week, traditional markets have been equally as bleak. The global share market has lost over $1.3 trillion in the last week alone.
Many crypto bulls had believed that panic in traditional financial markets would lead to more investment in cryptocurrencies. However, Innes states that gold will become the traditional investors’ new favorite risk-off asset.
“I don’t think coins are going to be anywhere near as attractive as some of the other cross-asset plays. Gold prices are going to jump considerably higher and there’s an inverse relationship we’re starting to see with gold and coins,” said Innes.
Is This the End For Bitcoin? No. Crypto Bulls Offer a More Optimistic Outlook
CNBC crypto reporter Ran Neuner sees the bitcoin downturn as approaching a bottom that will finish off the bearish momentum:
Up until now even though we have been in a bear market we haven’t seen panic or capitulation. In the last few days panic is clearly upon us. It’s a great signal that the bottom is near…
— Ran NeuNer (@cryptomanran) November 20, 2018
Additionally, eToro’s senior market analyst Mati Greenspan points out that bitcoin’s dipping value is merely a pullback from the last bull run. Greenspan emphasized that the price fall is “quite normal” and has been seen a number of times since bitcoin’s creation.
Offering an even more positive outlook, Wall Street’s Tom Lee stands by his (amended) prediction that bitcoin will touch $15,000 by the end of the year.
Will the cryptocurrency market rebound or continue to slide as Oanda believes? Share your views in the comments section below.
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