Bitcoin prices have already reached $4,400, reaching that level on August 14, before sliding back down to its current level of $4,137.
Some analysts say growth remains in the forecast for Bitcoin. In fact, Goldman Sachs technology strategist Sheba Jafari, who predicted the cryptocurrency would crest $3,900 in June, now says Bitcoin is headed to $4,800 by the end of the year, before a “massive correction” occurs, sending prices plummeting down to $2,200.
That’s quite a scenario, but given the high rise of Bitcoin, and its unregulated market model, Jafari may well be right again.
But do other Bitcoin watchers agree?
“It’s very possible that Bitcoin will exceed the $4,800 forecast by year end,” says Edward Anderson, chief sales officer at London-based FxPro. “Usage is increasing and supply is limited, which will most likely force prices higher. However, with the cryptocurrency exchanges being unregulated, there is always a concern around market abuse and consequences such as flash crashes.”
“The underlying trend suggests higher price levels but traders are wary that the bull run could end at a moment’s notice,” Anderson adds.
Other investment specialists say that, while the price of Bitcoin has been predicted to rise to $4,800 by end of the year, the value of Bitcoin goes beyond simple fiat value. “In that regard, I think they’re aiming too low [with Bitcoin price estimates],” says Gavin Marshall, the founder of Sharebit, a blockchain-based app that enables users to register, manage, track and transfer shares in both legal and informal entities.