In December 2016, Van-Petersen of Saxo Bank, a cryptocurrency expert, and an analyst predicted that Bitcoin was going to hit the $2,000 mark in 2017, whilst still trading just below $900. His prediction came to pass in May 2017, when the largest cryptocurrency surged past the $2,000 mark in May.
Kay Van-Petersen again this year in January predicted that Bitcoin could hit $100,000 this year, a feat which many thoughts were a bit over ambitious but at the same time very much possible. This prediction got many crypto investors excited, given the fact that it was Van-Petersen at the center of it and also Bitcoin’s unpredictable behavior. Van-Petersen also added that many altcoins in the crypto market were also going to outperform. It seems Kay’s prediction this time around isn’t happening anytime sooner.
Price predictions is a huge part of the crypto industry. Many crypto experts and even notable figures in the financial world, from time to time weigh in on the prices of the various digital coins. Many predictions were made this year with regards to the growth of many digital coins. Some have come to pass, but the majority of it has failed this time, and now the question of investors mind is that do crypto price predictions work?
The extreme volatility in the crypto market makes it hard to predict. Many predictions are mostly based on speculations rather than fundamentals. Regular trends are also highlighted very often, so if a coin gains over 10% in its value at a particular time, it is expected to improve on that or double that in the next year to come.
Historical events, regulatory changes, graphs, and developmental events are also often used in trying to know what lies ahead of a particular coin, all which can change at any given time. Moreover, with aggressive investors throwing money on digitals coins they don’t know anything about all in the name of getting huge returns makes speculations even a stronger candidate in the crypto market and also makes price prediction very had.
Then comes, another group who thinks using science to predict cryptocurrency prices is way more accurate than all the speculations in the industry. Many believe that incorporating social media interest, which is backed with actual figures, datasets, and other interconnections give a real view of what is up next for any digital coin.
However, even with this notion circulating, price predictions don’t always come to pass making the scientific method just as flawed as those based on speculations. The crypto market’s extreme volatility will continue to make any price prediction difficult and very far away from a 100% probability.