Bitcoin Rallies To $9,000 – BTC Could Face A Downside Risk
Bitcoin rallied yesterday pretty intensively, and at the moment, the crypto market is still looking green.
The most important coin in the market began the year at $7,191 and at the moment of writing this article, BTC is trading in the green, and the coin is priced at $8,699.36.
Despite the huge volatility of the crypto market, there are a lot of optimistic BTC-related predictions and most of them suggest that the coin will be surging significantly due to the halving which is scheduled in May.
BTC might be overvalued according to some
Despite BTC’s 2019 price decline, the coin is still super overvalued, says a group of strategists at JP Morgan led by Nikolaos Panigirtzoglou.
The analysis shows that Bitcoin’s intrinsic value is about $5,500, which is what the analysts think it’s really worth.
“The gap has not yet fully closed, suggesting some downside risk remains,” Panigirtzoglou wrote, according to Bloomberg.
More bullish BTC predictions
On the other hand, other important voices in the crypto space are more bullish.
Mike McGlone, a senior commodity strategist for Bloomberg Intelligence, expects Bitcoin to appreciate this year due to its fixed supply, increasing adoption, and its circulating supply which should increase 2.5% in 2020 as reported by the online publication the Daily Hodl.
“Bitcoin is winning the adoption race, notably as a store-of-value in an environment that favors independent quasi-currencies.”
BTC could reportedly hit $10 million
There’s also one extremely bold BTC-prediction, which claims that one day BTC will reach $10 million.
A few days ago, it’s been revealed that a co-founder of the blockchain technology startup Blockstream said that the notion that BTC could one day hit $10 million is not a crazy prediction at all.
Adam Back analyses an experiment from the early BTC developer Hal Finney but you can read about it in one of our previous articles.
A highly-skilled cryptographer, Back developed HashCash, the proof-of-work anti-spam mechanism. Now the CEO of Blockstream, one of the major founders and development teams behind Bitcoin Core, Back often speaks on the benefits of Bitcoin, and presented at the G20 Meeting of Finance Ministers this year.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.