Bitcoin Can Hit $15000 By The Year End

Jul 15, 2018 at 13:25 Update Date :Jul 15, 2018 at 13:25 UTC

10 December 2017 saw Bitcoin hit a peak at around $19,870. The graph then abruptly reversed course for quite a few weeks, downing out under $7,000 near the end of the first quarter. With the value of the cryptocurrency currently nearly touching the $10,000 mark, the question of the hour indeed is whether the currency will once again recover fully to its peak or not. Former vice president of the investment management division of Goldman Sachs Christopher Matta says that he would still invest money in Bitcoin. According to reports, Matta believes that a return for Bitcoin to the $15,000 mark is indeed possible.

Matta, co-founder of Crescent Crypto Asset Management, told CNBC that even for the most orthodox of investors, the returns adjusted for risk look pretty good compared to other token classes, even considering the volatility.

Indeed, research has shown that the factors leading to the abrupt decline in value are a standard response to any futures market introduction. They were not a result of any shift or decline in supply or similar other fundamental indicators. For instance, there have been reports of Goldman Sachs planning to open up a crypto trading desk. If true, this would definitely drive the supply of transactions that would actually affect the Bitcoin value. The transactional demand, mainly affected by the availability of other cryptocurrencies and the acceptance of Bitcoin by traditional banks and financial institutions, would definitely affect the price of Bitcoin going forward.

Since Matta’s interview with CNBC, the price of Bitcoin has fallen 7%, but he advises investors to stay calm, pointing out that it’s a long-term investment. He maintains that there is bound to be a lot of short-term volatility, and it has been hard to determine if they have been impacted by the introduction of Bitcoin futures. He recommends people invest for at least two to five years.

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