Bitcoin’s Next Stop: $14,000
I am raising my 2018 Bitcoin price target to $14,000 from $11,000. I am not trying to be a hero and compete with people on the Internet for who has the highest Bitcoin price. We currently have $200 trillion dollars in the world tied up in cash, stocks, bonds and gold and all four of those, in my opinion, are overvalued. If 1/2 of 1% (0.5%) of that 200 trillion dollars ends up in Bitcoin, you are looking at a one trillion dollar valuation that would be above where Apple Computers, the most valuable company in the World, is today.
That would put the Bitcoin price at more than $60,000 … I expect we will see this in approximately five years. My long-term price target is deep into the six figures. The Bitcoin price is now up 265% since my recommendation in early July.
It does not surprise me that we have moved up this far … I am though a little bit surprised that it has happened so quickly. Then again, there have been many positive developments during the last five months and a few of the obstacles that were in Bitcoin’s way have been knocked down. So, the move has been justified. An argument can be made that the good news is still not fully reflected in the current price.
When I calculate the Bitcoin target price I am adding Bitcoin Gold and Bitcoin Cash to the Bitcoin price. In other words, if Bitcoin market capitalization drops by 50 billion dollars tomorrow it would not be a concern of mine if Bitcoin Cash jumped by that same amount. This is a scenario that played out a couple of weeks ago when Bitcoin dropped by 20% and that decline was more than offset by a 100% move in Bitcoin Cash.
In the last 24 hours Bitcoin jumped 6% and volume was $3.6 billion.
Recent headlines moving Bitcoin up another 33% in the last week:
- CME Group Inc (NASDAQ:CME) plans on having a Bitcoin futures product by the end of the year, citing overwhelming demand.
- Square Inc (NYSE:SQ) released testing functionality on its Square Cash app where select users can buy and transact in Bitcoin.
- Bitcoin and Altcoins are rising together as we witnessed before the correction in September.
- American Express and Santander announced a partnership with Ripple. XRP is now #4 with a $9.2 bln valuation behind Bitcoin Cash ($19.8 bln), Ethereum ($34.4 billion) and Bitcoin ($137 billion). Ripple is being used to connect Santander clients in Europe and the United States.
- Ron Paul endorsed a crypto Bitcoin-based retirement investment CoinIRA.com.
- A senior official at Russia’s central bank said that he believes initial coin offerings (ICOs) have significant potential to fund Russian startups.