Will Bitcoin reach $1,000 in 2016? Analysts say yes

Rage Comment : Driven by global political and economic trends in 2016, the price of Bitcoin has been soaring, with a 33% increase in the last month alone. According to experts' predictions, the price of Bitcoin will exceed $1,000 by the end of 2016; after a short-term decline, it will soar further. At the same time, the strong signal of Bitcoin prices may drive the upward trend of other cryptocurrencies, especially Ethereum, so investors should pay full attention to the dynamics of the cryptocurrency market.

Translation: Flora

As 2016 draws to a close, the price of Bitcoin continues to show a strong, upward trend.

No matter which social media you choose to get your information on, you will find that the price of Bitcoin is "storming", "soaring" or "climbing" to $1,000. In the past month alone, the price of Bitcoin has risen by more than 33%, from $732 on November 29 to a year-high of $977.35.

As of press time, the price of Bitcoin has risen by nearly 5% in one day, and the return in 7 days can reach 20%.

Should the price of Bitcoin break through $1,000 (compared to when it first appeared in January 2014), the digital currency will benefit greatly from a wave of new support. Analysts say that after the price of Bitcoin breaks through $1,000, more people will become aware of the digital currency, resulting in more new capital.

Once the Bitcoin price exceeds $1,000, this price will become a new support level.

After breaking through the 1,000 yuan mark, the price of Bitcoin will drop. This decline will stimulate market participants to intervene and buy the currency. Therefore, 1,000 US dollars became the minimum price.

Coming soon

Cryptocurrency hedge fund manager Tim Enneking says bitcoin will soon reach $1,000. He told CoinDesk he expects the digital currency to start 2017 at $1,000.

Enneking highlighted the importance of the 2016 “Christmas Rally,” which refers to the upward trend in Bitcoin’s price around Christmas.

Arthur Hayes, co-founder and CEO of trading firm BitMEX, made the same prediction.

“I expect the price of bitcoin to hit $1,000 by December 31, 2016,” he told CoinDesk. “It went from $860 to $900 in one day. I think that’s a healthy pullback.” He further added:

“Bitcoin price will hit $1,000 before 2016 is over.”

Investor Vinny Lingham expressed the same view in his forum yesterday. He did not make a prediction on the price of Bitcoin at the end of the year, but was very optimistic about 2017.

“As I have predicted before, the price of Bitcoin will rise to around $3,000 by the end of next year,” he wrote.

Precautions

Likewise, no one can claim that their predictions will be correct.

Jacob Eliosoff, a cryptocurrency fund trader, stressed that he believes the Bitcoin and Ethereum markets will be correlated by the end of the year. While he acknowledged that Bitcoin’s price could break $1,000, he did not rule out the possibility of other cryptocurrencies gaining attention through big gains.

He specifically pointed to the strong rise in the price of long-struggling ether as an example of a reminder that market attention could be diverted elsewhere.

He further stressed that when it comes to cryptocurrencies, “no one should bet too much on predictions that need to be tested over time.”