Experts split over future course of bitcoin
Bitcoin prices climbed above the 10 million won ($8,585.9) mark over the weekend raising expectations that the virtual coin will continue on another bullish run.
The sudden hike of the world’s most-widely traded cryptocurrency followed Chinese President Xi Jinping’s recent remark claiming China should “seize the opportunity” offered by blockchain technology.
Experts, however, displayed a mixed outlook about the future course of the bitcoin price.
According to Korea’s largest crypto exchange Bithumb, bitcoin was traded at 10.97 million won as of 2:30 p.m. Tuesday, down 1.5 percent from a day ago.
The virtual coin’s price is experiencing a correction period since it peaked at 11.96 million won over the weekend, climbing 2.91 million won, or 24 percent, since Xi’s favorable comment about the technology.
Other virtual coins are also enjoying momentum.
Ethereum’s price gained 5,500 won, or 2.65 percent, to 212,800 won in the same period. Bitcoin Cash’s price was also up 15,900 won, or 5.52 percent, according to the exchange.
Despite the rally over the weekend, experts are divided in their outlook about the coins’ future prices.
Crypto analyst and trader Crypto Michael said bitcoin prices could reach $20,000 by next year, claiming the price pattern is similar to that of early 2016.
“The 2016 period and now are still comparable in which targeting the $17,000-$20,000 range prior to a halving is realistic,” he said.
Crypto-to-crypto derivatives platform Amulet Managing Director
Marouane Garcon welcomed Xi’s endorsement.
“People know that his green light will cause a ripple effect across China,” Garcon said.
“Having China onboard, in my opinion, is just as good, if not better, than having America onboard.”
Domestic observers remained skeptical about the current rally.
“Virtual coin prices jumped a lot when Facebook introduced its plan to roll out its own coin, but immediately submerged after a short rally,” said virtual coin investor Kim Hwan.
“I would rather take a wait-and-see approach. The momentum could be slashed again even by a small unfavorable factor.”
Xi’s remark came as a surprise as Beijing has been skeptical about cryptocurrencies, banning a fundraising exercise known as an initial coin offering and forcing local trading platforms to shut down in 2017.