The last week of 2017 and the first days of 2018 have not been too kind to Bitcoin. Although the price didn’t collapse by any means, there’s a clear lack of bullish momentum in place. Most people assume that 2018 will be an even bigger year for the world’s leading cryptocurrency. So far, it seems speculators will need to be more cautious than ever before. David Stockman, a Wall Street veteran, fears 2018 may not be stellar for Bitcoin whatsoever.
What is Next for the Bitcoin Price?
Having the answer to that question is almost as good as knowing the next winning lottery numbers. Everyone with an interest in cryptocurrencies hopes to see the Bitcoin price go up. After all, such momentum would mean big things for most altcoins as well, as their values heavily hinge on the Bitcoin price these days. At the same time, we’ve seen how Bitcoin has struggled on the technical front, reducing its appeal to people looking for a currency to use rather than hold.
Speculating on the Bitcoin price can be quite lucrative, even though it carries a lot of risks as well. Moreover, it has become a bit easier to speculate on the Bitcoin price thanks to futures contracts offered by CBOE and CME. Unlike what most people had expected, these contracts have not pushed the Bitcoin price up, but rather have brought it down. That’s a very interesting development to monitor, especially considering that Bitcoin price speculation will only become more popular moving forward.
If Wall Street veteran David Stockman is to be believed, however, going long on the Bitcoin price is one of the worst options right now. That’s because, in his opinion, Bitcoin will see a “spectacular crash”. It is not the first time we’ve heard such statements, as quite a few financial experts are thinking along these lines. So far, they have been proven wrong, even though the bearish Bitcoin price momentum is far from over. There’s no clear indication as to what the future will hold for the world’s leading cryptocurrency, which is both worrisome and exciting at the same time.
While it is true that speculating on the Bitcoin price is a big risk, a crash seems a bit far-fetched. It is true that we are far away from Bitcoin’s all-time high, but no one expected anything else at this point in time. After all, the year 2017 was extremely kind to all early Bitcoin investors, and a lot of people simply cashed out profits in December. It is the natural order of things, after all. Given the volatile nature of cryptocurrencies, taking profits whenever the opportunity arises is always the correct answer.
Although it may not be a popular opinion, the launch of “mainstream” Bitcoin futures may not have been the best decision. Giving more anti-Bitcoin people a way to short Bitcoin will only hinder the growth of this market. The world’s leading cryptocurrency has proven its naysayers wrong for nine years now, but all streaks will eventually come to an end. For now, no one knows for sure what the future holds, nor is it certain Bitcoin will remain the world’s leading cryptocurrency in 2018 or beyond.
Regardless of what one’s personal opinion may be, the prediction by David Stockman shouldn’t be taken lightly. Although there is still plenty of belief in Bitcoin as a store of value, the currency aspect is becoming less important to most speculators. How all of this will affect the Bitcoin price moving forward remains to be determined. A lot of interesting things will happen in 2018, for better or worse.