A report published this week by Fundstart Global Advisors promises astronomical growth for Bitcoin. By the end of 2019, the Bitcoin exchange rate is expected to rise to 36,000 US dollars, or almost 30,000 euros. The driving factor for this will be falling costs in the mining industry. This was announced by Tom Lee, Chief Strategist of Fundstrat, among others. In the short term, however, he predicts an increase in the Bitcoin price in the coming days. For example, the consensus conference scheduled for next week has proven to be a decisive price driver in the past.
Good news for investors and the Bitcoin secret
According to Fundstrat Global Advisors, the Bitcoin share price will not only recover in the next few years, but will also experience exploding growth like this: https://www.geldplus.net/en/bitcoin-secret-review/. In a report published this week, the New York Bitcoin secret research company predicts that the price will grow to 36,000 US dollars by the end of 2019.
The cause of this optimistic forecast is said to be the “Bitcoin Price to Mining Break Even Cost Metric” index, which was consulted by Fundstrat. In essence, this index calculates the Bitcoin price in relation to the costs incurred for its mining.
Due to falling mining costs, more efficient computing power and ever larger farms, the report adds up:
“We believe that the current growth in computing power by the end of 2019 will lead to a Bitcoin price of just under 36,000 US dollars [30,000 euros] with a range of 20,000 to 64,000 US dollars [21,000 to 54,000 euros].
The thesis is supported by Thomas Lee, Chief Strategist of the Fund Council. He posted a summary of the report on his Twitter profile. Fundstrat’s latest calculations coincide with his personal assessment, which he published at the end of April. In it, Lee is betting on a Bitcoin trading price of 25,000 US dollars by the end of the year. He also assumes that the Bitcoin could be traded at up to 64,000 US dollars by 2020. He also argues with decreasing mining costs as a price driver.
Fundstrat: Consensus conference as short-term cryptosoft price turbo?
Overall, cryptosoft is an important factor for the Bitcoin price. This is because the computer power business itself is dependent on electricity costs for the mining process. This is why more and more mining farms are currently migrating north. Here, favourable prospecting conditions are tempting due to low temperatures, affordable hydroelectric power and crypto-friendly laws. More and more Chinese miners are currently pitching their tents in Scandinavia.
In addition to the medium-term perspective, Lee’s report also forecasts a price rise in the short term. According to Fundstrat’s calculations, the Consensus crypto trade fair to be held in New York at the beginning of next week will cause a price sprint. This would be suggested by the comparative data of the past two years, according to Fundstrat analyst Robert Sluymer in an interview with CNBC.
Since 2016, the annual New York Consensus Fair has brought together the biggest names from the scene with important representatives from politics and industry. More than 4,000 unprecedented participants and 250 speakers are expected this year – among them representatives of the US Securities and Exchange Commission, the CFTC and the EU Parliament. This means that the fair has the potential to initiate groundbreaking changes and innovations.
Nevertheless, Sluymer received criticism for his forecast from the CNBC correspondents. This is a conjecture that is based on only two comparable data points. The causes and backgrounds of market dynamics and macro trends, however, could not be established from a single event.