Bitcoin To Hit $5,000 This Month
If you haven’t been paying attention, Bitcoin has been on a rocket ship ever since its August 1st hard fork. It has hit its own all-time high nearly every day this month and its market cap sits right near PayPal (PYPL), Adobe (ADBE), and Netflix (NFLX) right now (near $70 billion).
At the time of writing, one Bitcoin has eclipsed $4,000 in value, up from the $2,200 point it sat at in July as the world awaited to see how miners would decide its future on August 1st. Here’s a timeline of the August 1st hard fork; which created the new Bitcoin Cash (itself the 4th most valued cryptocurrency now) and also produced “segwit” for Bitcoin; an additional layer of functionality for the currency. Segwit stands for segregated witness and has finished phase one of its implementation with phase two happening August 18th. All signs are positive on this front.
Okay, so Bitcoin has been unbelievably bullish this month, but what signs are there that this will continue and not experience a bubble-pop that might be associated with such a meteoric rise in value.
One is penetration. Bitcoin has been a rising trend in investor vocabulary for a few years now, but never as much as this. There’s still an enormous march for new money to enter into the arena, with hardcore loyalists holding their money as they see Bitcoin overtaking at least a decent slide of world GDP. One metric to see this is Coinbase (one of the most popular and most accessible trading platforms) is claiming to have as many 40,000 new users signing up per day. With Bitcoin hitting all-time highs, and the increased presence coming from that, I only see that number increasing.
But that’s individual investors. The real way Bitcoin can prove its value and grow the extra 25% to hit $5,000 will be with some serious influx of cash and rise in overall crypto market value. Analysts are predicting both. Analyst Ronnie Maos, who correctly predicted that Bitcin would reach $4,000 this month, sees it possibly hitting $7,500 by year’s end—and has predictions that the entire cryptocurrency world could be worth as much as $2 trillion (about an 9x increase from current totals).