When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch for some of the action, you’re not alone.

 

Bitcoin’s pace has accelerated ever since the world’s largest derivatives exchanges announced that they plan to launch bitcoin futures contracts — on Dec. 10 at CBOE Global Markets and Dec. 17 at CME Group.

Will Bitcoin Reach $100,000?

Until now, most of the bitcoin trading involved currency spots and forwards; while the latter transaction includes the ability to bet on values going up or down, the timeframes involved are more limited than futures contracts.

Don’t expect the added types of bitcoin transactions to reduce volatility in this type of trading. Turbulence is par for the course with all cryptocurrencies — there are now hundreds of them in existence.

Sometimes it’s just cynicism by others in the investment community that has a negative effect on bitcoin’s value– like several of the world’s largest banks announcing on Dec. 7 that they want to prevent bitcoin futures from launching on exchanges. Where cryptocurrencies can trade and how they are regulated continues to be a work in progress, and that continues to keep the currencies volatile.

Although some say they think bitcoin might keep going even higher — possibly up to $100,000 within a year — the prudent move might be to keep watching how bitcoin’s value moves.

You might wait for it to descend to what might look like a trough and maybe try to buy at that time. Depending on when you’re reading this, you might be seeing a bit of a relative trough already.

Bitcoin fell more than 20% in a matter of hours from an intraday high of about $19,340 just on the day this article was written.

Small Market

The velocity that bitcoin moves at invokes comparisons with small-cap stock options. One of the reasons why the value can plunge so quickly has to do with the relatively small size of cryptocurrency markets compared to other asset classes.

This is actually challenging for even professional investors to move around in. They find it difficult to take on a large position in markets of these size: Any move into or out of the currency is noticed by the rest of the market and they typically also move in the same direction. This has the result of amplifying the momentum of an upward or downward movement in the exchange rate, intensifying the volatility.

All of this also makes cryptocurrencies challenging for novice investors to do anything other than perhaps try to make a long-term investment — or simply watch the market and learn from its development.

Otherwise, if you rush into bitcoin trading with the attitude of a day trader — intending to move around a lot — you might get hurt, or at least get vertigo. Investing in bitcoin is not without risk. And what goes up quickly can also go down quickly. Investment professionals often compare the stock market to a casino, and the comparison also seems relevant to bitcoin.

Just like there’s no way to predict where a spin of the roulette wheel will end, it’s impossible to time the market. Anyone who boasts that they can is either lying or destined to fall into the hands of regulators — although the regulators are still trying to reach an agreement on how they plan to handle cryptocurrencies.

Readers, have you tried your hand at bitcoin — or are you wishing you did?

Save More Money in 2018

Coins 1523383 1920

Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
Japan's Lost Decade, U.S. economy, lesson learned

Japan’s Lost Decade | 6 Lessons Learned That May Help The US Economy

Decades ago, Japan’s economy was the envy of the world, ranking first in GNP per capita in the late 1980s. Then, this Asian tiger... more →