The price of bitcoin is predicted to reach $ 64,000 or around 896 million rupiah (current exchange rate) by the end of 2019, according to a new analysis of the cryptocurrency mining economy.
Research conducted by Wall Street strategy company Fundstrat Global Advisors, argues that the ratio between bitcoin prices and the break-even costs of miners (P / BE) has proven to be a "reliable level of long-term support" for a reliable cryptocurrency and that the construction of mining infrastructure is currently and the future will "support the appreciation of bitcoin prices to the end of 2019."
"We hope the mining economy will grow over the next few years, and project BTC prices at ~ $ 36,000 by the end of 2019 based on a 1.8x P / BE multiple historical average," Fundamental Fundamental Strategist Sam Doctor wrote in his report.
Doctors added that although $ 36,000 was the most likely target for the price of bitcoin according to this analysis, it could end anywhere in the range of $ 20,000 to $ 64,000 depending on how the landscape developed over the next 18 months.
Even the lower end of the range represents a 113 percent increase in current bitcoin prices, while more optimistic targets represent a 583 percent surge. At the time of writing, bitcoin traded at $ 9.375 on Bitfinex.
As quoted on ccn.com, mining companies have rapidly increased their operations following a prolonged bull market last year. Bitmain, the dominant mining hardware producer in the world, is said to have generated operating income of $ 4 billion in 2017, and Canaan - its biggest competitor - is preparing to hold an initial public offering (IPO) which is believed to provide a $ 1 billion valuation.
The funds have long been bullish on bitcoin. Founder Tom Lee argues that, among young investors, the cryptocurrency quickly replaced gold as the most popular "value store", and the company has published a number of analyzes that show ecosystems will experience sustainable long-term growth.
The company has set a target of year-end price predictions at $ 25,000 for 2018 and previously said that bitcoin could rise as high as $ 91,000 at the start of 2020.