Bitcoin has fallen to its lowest price since October 2017, marking the last losses in a year that saw its value fall to only a quarter of what was worth only a year ago.
Despite these losses, some cryptocurrency analysts are making bold predictions that bitcoins may return close to record levels before 2019.
After falling below $ 4,300 late Tuesday, the bitcoin's price recorded a slight rebound and at the time of writing was trading at around $ 4,600. This is very far from the high forecasts that some analysts predict for bitcoin this year, with many forecasting a return of $ 20,000 at the end of 2017.
But while some cryptocurrency analysts have revised their forecasts, others have kept their figures in anticipation of a major market change in the coming weeks.
One of the most optimistic forecasts comes from Adam Back, co-founder of Block Blockin's blockchain, who claimed to predict earnings that will bring the price of bitcoins to over 100 times today's value.
"Personally, I consider $ 250k – $ 500k / BTC plausible in the years to come," Mr. Back said on Twitter in response to Bobby Lee, another crypto-curriculum fan, who speculated on the overall value of bitcoin could exceed the overall value of In the next few years.
The recent market crash has failed to dampen the bullish forecasts of the Fundstrat co-founder, Tom Lee, who said he expected the bitcoin to reach $ 15,000 by the end of 2018.
Mr. Lee justified the current price of bitcoins by referring to the recent collapse in the price of technology stocks, such as Amazon, Apple and Facebook. The increase in institutional support, he said, would help turn bitcoin fortunes around.
"Global markets have seen liquidity drying up and bitcoin is not necessarily an asset value, as are growth, tech and FAANG. [Facebook, Amazon, Apple, Netflix and Google] come under pressure, it will damage bitcoin. The slowdown of FAANG is damaging those who own the bitcoin, "Lee told CNBC.
"The next wave of adoption is institutional, it's a crossover event, this is just an embarrassing transition … Once that is achieved, the institutions will feel much more comfortable in making bets [on bitcoin]".
Other analysts have taken a more retrospective look at the recent turmoil of bitcoin, stating that such significant price movements are not surprising given the history of cryptocurrency.
"What we are seeing now is the aftermath of the unprecedented rise of Bitcoin and other cryptoassets seen in 2017. This year is simply a retracement of this, the same is happening in even wider markets, where technological stocks, for example, follow a similar pattern: as with all markets, if prices reach levels higher than those that can be justified, they must retreat, "said Mati Greemspan, an analyst at eToro online trading platform, in a L & # 39; Independent.
"These cycles can sometimes be accentuated in the encrypted market because of the riskier nature of this nascent industry, as the previous cycles did not mark the end for wider markets, these price movements do not mark the end of the cryptoassets. at the beginning of the encrypted journey, a certain volatility is expected in this phase ".