During Bitcoina��s exponential rise over the course of 2017, it was easy to imagine the cryptocurrency had taken off and was never going to come back down. Thus far, 2018 has been a rude awakening for those who werena��t ready for a course correctiona��Bitcoin has lost nearly $50 billion of its market value in January.
Despite the drop off that has hurt those looking at Bitcoin as a a�?get rich quicka�? opportunity, there remain those with a longer view of the cryptocurrency who are unshaken by the shift in the market that has sent Bitcoina��s value plummeting below $8,000 for the first time since November.
A survey of more than one dozen financial experts conducted by International Business Times between January 25 and January 30 found that the majority are optimistic Bitcoin will regain much of its lost value by the midway mark of 2018. On average, the experts predicted Bitcoin will be valued at about $15,500 in six months.
The tumultuous time that Bitcoin is currently experiencing has been caused by a number of factors, according to experts, not the least of which is the newfound scrutiny being applied to the cryptocurrency market by regulators in the United States and around the world.
While Bitcoin and its underlying technology hasna��t directly been the subject of investagory efforts, the recent revelation that cryptocurrency Tether and the worlda��s largest cryptocurrency exchange Bitfinex were subpoenaed by the U.S. States Commodity Futures Trading Commission (CFTC) has created a sense of uncertainty in the market.
Derin Cag, founder and CEO of Richtopia , predicted Bitcoin would remain at about $9,000 as he expects the cryptocurrency will be stunted by outside challenges including regulators and internal challenges stemming from the technology Bitcoin is built on.
a�?I think it could get stuck at this price due to regulations and lack of scaling,a�? he saida��though he provided a much more optimistic view for an end-of-year goal if Bitcoin can successfully navigate its short-term woes. a�?Once regulations are in place and if scaling is achieved, then $50,000 or more by December 2018 could be feasible.a�?
Others view the current dip in Bitcoina��s value as an inevitable correct, regardless the cause, and expect that it will return to its previous benchmarksa��and highera��over the next several months.
a�?Bitcoin has now experienced a correction period that has lasted as long as most of the previous correction periods. From history, it may now take us most, perhaps all, of February to climb back to the all-time high,a�? Raphael Rottgen, partner and head of research at Q2Q Capital, said. a�?Once we surpass the all-time high, history tells us that the price may rally 50 percent [or higher] before going into another consolidation period.a�?
Rottegen said there are a number of factors that could enable extended growth for Bitcoin in the near future, including widely accessible trading tools like Robinhood and improved technological infrastructure like adoption of the Lightning network .