Looks like we have another naysayer. Saxo Bank has come out with it’s annual, “Outrageous Predictions” and has stated that they expect bitcoin to hit above the price point of $60,000 over the course of next year before it rapidly falls downwards.
The bank is seeking to deploy this forecast because they want to create a conversation around what the peak of bitcoin could be before it eventually decreases. They want to delve into the matter of what will be the highest of highs and what might be the lowest of lows. This will be quite a conversation starter piece indeed.
The bank is hinging its prediction efforts of $60,000, a 350% increase from where it is at right now, on the surge of institutional investors’ investments that is to come from the deployment of futures contracts and increasing enthusiasm of the everyday investor.
In this $60,000 scenario, the cryptocurrency market would easily surpass a trillion dollar valuation and many bitcoin investors would see their fortunes rise.
The investment bank is looking at their crystal ball and they are seeing that the price would go up to this level and then would drastically fall by the start of 2019 to, what they believe, is the foundational value of the currency. They also note that other contributors to the fall of the virtual currency would be things like China and Russia offering their own state-sanctioned cryptocurrencies.
Saxo analysts stated:
“The rise of Bitcoin and other cryptocurrencies has been one of the most spectacular phenomena of financial markets in recent years. Bitcoin will continue to rise – and rise high – during most of 2018 but Russia and China will together engineer a crash. Bitcoin will be thrown to the wolves. Before long, however, the Bitcoin phenomenon finds the rug torn out from under it as Russia and China move deftly to sideline and even prohibit non-sanctioned cryptocurrencies domestically. After its spectacular peak in 2018, Bitcoin crashes and limps into 2019 close to its fundamental ‘production cost’ of $1,000.”
The bank went on to state these are simply outrageous predictions and certainly doesn’t act as an analysis of the state of the market and how it will be in the near future.
Saxo Bank sends out this annual report with the goal of establishing and realizing “highly unlikely events with underappreciated potential.”
We’ll see how these outrageous predictions wrap up. Funny thing is, bitcoin has seen the worst of many situations, yet has still continued to shake off turmoil and grow.
About Saxo Bank
The Saxo Group is a global online investment bank regulated in the EU, headquartered in Copenhagen, Denmark, and operating in financial centers around the world including London, Singapore, Paris, Zurich, Dubai, and Tokyo.
The primary activities of the bank are the facilitation of trading and investing for private institutional clients and providing access to global markets and a broad range of asset classes and tradable instruments.
The bank entered the market in 1992 and has been present for a while now, becoming one of the largest banks focused on online trading and investing.