Is Bitcoin Really Headed to $27,000 in February 2018? A Prominent Trader Says It Is
Every time Bitcoin reaches another all-time high, the bulls and bears come out of the woodwork. Fresh on the heels of its latest all-time trading high, Investment banker Jamie Dimon of J.P. Morgan recently reemerged and broke his vow to stay mum on the cryptocurrency. Far from admitting defeat, Mr. Dimon doubled down, calling Bitcoin investors stupid and predicting financial ruin ahead.
On the other side of the Bitcoin picture is a jaw-dropping prediction that the cryptocurrency will be selling not as low from $9,000 (that some traders have speculated) but as much as $27,000 in just few weeks. That is a stunning prediction, but will it really come true?
The $27,000 Bitcoin prediction comes courtesy of Trace Mayer, an entrepreneur, journalist, investor and podcast host. As is common these days, the prediction was made via social media, and it immediately made a splash among cryptocurrency fans and skeptics alike.
The fact that the price prediction was so specific seemed to add to its credibility. Trace Mayer predicted a price of $27,395 for Bitcoin by February of 2018, a date that is currently just a few weeks in the future. Traders will be marking their calendars now – and watching the Bitcoin market closely until that February date arrives.
Some might say that the $27,000+ prediction is somewhat self-serving. Mr. Mayer is, after all, the host of The Bitcoin Knowledge Podcast, so one could argue he is a bit biased. Even so, there is some science behind the prediction.
Trace Mayer is basing his $27,000 prediction on the 200-day moving average, an accepted standard for individual stock valuation. It remains to be seen if that kind of valuation will work in the cryptocurrency arena, and for now all we can do is watch and wait.
There is at least some reason to believe Mr. Mayer is for real, not least of which is his long history with the cryptocurrency. Mayer has been a believer in Bitcoin from the very beginning, making his first investment at the now-inconceivable price of $0.25. Mayer also predicted the wide-ranging impact of the financial crisis of 2008, laying out the details in the aptly-named ebook The Great Credit Contraction, an ebook that launched his current popularity among the blogger and podcast community.
Mayer also bases his prediction on the nature of the Bitcoin market. He argues that since the dawn of time, ordinary people were forced to use currencies created by their rulers and that Bitcoin has essentially flipped the script. He notes that Bitcoin and other cryptocurrencies have given ordinary consumers enormous power, freeing them from the fiat currencies of old – and from the governments and central banks that control them.
Taken in a vacuum, the latest prediction of a $27,000 Bitcoin might seem outlandish, but this is just the latest in a long list of similar predictions. Other investors have already predicted that Bitcoin will reach $50,000 by the end of the year, and with the cryptocurrency currently hovering near the $13,880 level, it is completely possible they may be right.
What do you think?