Analyst on wall Street predicts wide variations of bitcoin in 2018

Lead analyst on wall Street, working in cryptocurrencies and co-founder of the new York research company DataTrek Nick Kolas (Nick Colas) argues that bitcoin has the potential for strong bi-directional traffic in 2018, with the price fluctuations between $6500 and $22 000.

Kolas, which monitors the Bitcoin for a minimum of four years, sees no harm in the volatility of the cryptocurrency in 2018, because «cryptocurrency is difficult to assess and their economic benefit depends on the use cases that have not yet been built». According to him, the average price of around 14 000 dollars is a reasonable price for the flagship cryptocurrency next year.

«Bitcoin could rise to $ 22,000 or go down to 6500 $ and it would also be reasonable price. We expect to see both figures in 2018,» he said.

Along with price fluctuations, Kolas tells about the decline in the market capitalization of bitcoin during the year, since altcoins are able to further reduce its dominance.

This year, the dominance of bitcoin capitalization decreased from 87% to 44.2%. Though it exceeds 256 billion, there are now 35 cryptocurrency with a market capitalization above $ 1 billion.

To confirm their findings, the Kolas compared the number of bitcoins worth $ 100 in circulation. Following his thoughts, if the price of bitcoin was 10% of the total amount of $ 100 in circulation, its price was about 6500 dollars. If we raise it to 33%, you will receive the mark of $ 22,000. Obtained the average between the maximum and the minimum is 14 035 USD, which is not too far from the current price of bitcoin.

The only way that could significantly raise the price of bitcoin in his opinion – large-scale use of bitcoin business.

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