The Quinlan Associates, a Wall Street Consulting Firm dropped a surprising Bitcoin price prediction at the beginning of the year when the digital asset was trading a little above $14,000. They predicted that Bitcoin would drop in price to trade as low as $1800 by the end of 2018. There were many criticisms against this price prediction considering how the price was surging, and how the likes of Tom Lee and John McAfee had predicted over $20,000 price for the digital asset. Today, their prediction is coming to pass.
Today, the Bitcoin price is trading at $3825 after taking a deep drop just as the Quinlan associates predicted.
Using the cost of production and the store of value approach, the Quinlan Associates arrived at $2161 and $687 price respectively.
A further calculation led to the conclusion that bitcoin would drop down to $1800. According to the report, the bitcoin price was a purely speculative investment asset which makes it highly volatile. They predicted that the total bitcoin market capitalization would collapse from $740 billion to $223 billion. Today, the total market capitalization is $126 billion, which is over 70% fall.
So what is next?
Since the Wall Street Consulting Firm had it right on the temporal crash of the market, what then lays ahead? Good news to the cryptocurrency investors is that the firm predicted that bitcoin would make a comeback. In fact, they predicted that the pullback in the market would be a temporal one, as the market will make a comeback to rise to the moon. This should be expected in the long run. “While we anticipate valuations to decline in the short-term in response to the widespread unwinding of the digital currency space, the price of utility cryptocurrencies are likely to recover and dominate the market in the long-term,” they predicted.
Bitcoin, just like any other investable asset has a rough time on its journey to the top. At a point, bitcoin recorded over 60% fall in price but took a deep turn to record an all-time high. On the future price prediction, Tom Lee, a Wall Street Analysts also predicted a huge rise of the digital asset. Bitcoin has even been predicted to reach as high as $100,000. The entire cryptocurrencies are expected to rise to their full potential as bitcoin bounces back.