Analyst predicts Bitcoin will hit $91k by 2020
Bitcoin has seen its value more than half since hitting a high of almost $20,000 in December. On Sunday, one bitcoin cost investors $7,366. Now, the researchers at New York-based Fundstrat Global Advisors believe they have mapped out the short and long-term trends of the digital currency, including mining costs, trading trends and other technical analysis.
Published by Forbes, the statistics-based graphic compiled by the company’s Head of Research, Tom Lee, shows the currency’s history of dramatic rises following dramatic falls in value. Lee also developed the Bitcoin Misery Index (BMI), a contrarian indicator, meaning the lower it is on the scale, the greater the likelihood of bitcoin will moving up in price. The cryptocurrency is currently at the second lowest point of the past eight years.
Lee’s prediction isn’t shared by billionaire investor Warren Buffett who expects bitcoin, and all cryptocurrencies, to come to a “bad ending.” Buffett added that he doesn’t own a single bitcoin and has no plans of investing in it.
The drop in bitcoin’s value was likely sparked by Google’s announcement Wednesday that it will ban all cryptocurrency ads “including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets and cryptocurrency trading advice.”
Google was responding to a move by its main advertising rival Facebook which had announced the ban in January. The cryptocurrency was also probably hit a warning from the US Securities and Exchange Commission (SEC) earlier this month that cryptocurrency exchanges were not regulated.