The markets are not pretty this morning. And it is always good to first give someone the bad news before revealing the good news. The bad news is, and as stated, the markets are in the RED. Bitcoin (BTC) is trading at $8,353 and looks like it is headed to bigger trouble with a 24 hour drop of 5.28%.
Ethereum (ETH) is also not doing too well and could touch $500 if the current decline of 7.15% in 24 hours is not stopped. ETH is currently trading at $657. Ripple (XRP) on the other hand has dipped below the 70 cent marker and is trading at $0.67 at the moment of writing this and down 4.37%. Bitcoin Cash (BCH) had looked like it was immune to the current turmoil but it too has dropped 7.36% and currently trading at $1,335. EOS is also in a bad place and trading at $13.61 and down a heavy 14.66%. Litecoin (LTC) is also not looking good at $135 and down 6.20%.
So what is the good news?
As stated earlier, there is news of new research from Fundstrat Global Advisors that state that the King of Crypto, Bitcoin (BTC), is headed for better times with a price prediction of $36,000 by the end of 2019. This announcement was made by the firm’s CEO, Thomas Lee, through a tweet that revealed a new Bitcoin Mining White Paper. In the tweet, Mr. Lee said the following:
CRYPTO: Our quant/data scientist @fundstratQuant publishing #bitcoin mining white paper. Crypto mining economics lead/explain $BTC price—suggests $39,000 per bitcoin by YE19
In the paper, Mr. Lee and Fundstrat state that they expect the Mining economy of Bitcoin will grow in the next several years and based on what they call The Bitcoin Price to Mining Breakeven Cost Metric (P/BE). He states that the P/BE will grow by an average 1.8 times and result in the $36k Price.
Another take away from the paper is the currently known global reduction in the cost of electricity costs incurred by miners through the introduction of more efficient mining rigs. The research paper also advised for the need for small pool of miners to combine hash power to stay relevant. This is after large scale operations have become the norm with some occupying large farms in Iceland.
In conclusion, Mr. Lee stated that with the $36,000 BTC price prediction, comes a $20,000 to $64,000 range to work with till then. The price could oscillate between these two values.
Mr. Lee has also had some noteworthy price predictions in the past. Back in April, he predicted that BTC will hit $25,000 by the end of this year. He has been bullish about the King of Crypto for its ‘great risk-reward’ ever since he switched from a regular stock analyst to a crypto investor and enthusiast through Fundstrat.
He also advised Crypo-traders to HODL during the slumps in March for big gains were around the corner. These big gains are what many traders and HODLers are waiting for. But patience is key as the crypto-verse has been bombarded with FUD, Regulation attempts and even hackings.
One thing is for sure, Crypto is here to stay and is experiencing some teething problems that are normal with any new technology or industry. Keep on HODLing.