As 2018 is just around the corner now, Saxo Bank in Denmark has just put out its list of predictions for the coming year, and one of their big predictions is that bitcoin will skyrocket to $60,000 in 2018. There is a downside to this prediction however, relating to what some are calling the bitcoin bubble. Saxo believe that at some point next year bitcoin will achieve somewhere near this $60,000 threshold with what they say will yield a market capitalization totaling over $1 trillion.
Saxo’s predictions are ones that investors should heed, especially considering their Outrageous Predictions for 2017. For instance, one of their predictions about bitcoin for 2017 was that that they “could see bitcoin easily triple over the next year going from the current $700 level to +$2,100.”
While their prediction for bitcoin this year wasn’t necessarily 100 percent accurate, with bitcoin skyrocketing to $18,000 on December 7 according to Coin Telegraph, it certainly did reach the $2,100 mark this year, as Business Insider report, and just continued going up.
Saxo Bank worryingly also predict that a coalition of various governments will work their hardest to try and ban bitcoin and other cryptocurrencies, which would be followed by the swift creation of government cryptocurrencies, thereby causing bitcoin to spectacularly crash to the $1,000 mark.
The idea of governments banning bitcoin is one which is certainly feasible, but most investors feel this is pretty unlikely. Japan has already recognized bitcoin as being an acceptable form of payment earlier in the year and the trading of bitcoin in Japan now comprises nearly half of the volume of their global trade. According to CNBC, at the moment there are approximately 4,500 stores in Japan that allow customers to pay using bitcoin, and that number is expected to rise dramatically to fivefold that amount.
Even when China announced that they would be shutting down public exchanges for bitcoin, Chinese investors were still clamoring to trade the cryptocurrency and the demand for bitcoin grew even more sharply, as BTC Media’s John Riggins described in the Financial Times.
“The situation with China’s exchanges has pushed more of its trading over the counter, where there is a fairly robust and liquid market.”
— CNN (@CNN) December 10, 2017
Whether Saxo Bank’s prediction of bitcoin reaching $60,000 (or higher) comes true in the next year remains to be seen, but if 2017 is anything to go by, the next year will undoubtedly be an interesting one for bitcoin and other cryptocurrencies.