No new highs are expected from Bitcoin in 2018, according to economist and investor Tuur Demeester, with more “sideways and downside potential” for the coin’s price.
Writing in a blog post for Medium, Demeester states that, while he is bullish on the long term prospects for Bitcoin, he does not believe that its value will spike again this year. For thoes expecting such an occurance, he heeds caution.
He wrote: “In the past few months we’ve [seen] a number of macro events that would appear to be bullish for Bitcoin as a safe haven: the North Korea debacle, a spike in volatility, Chinese stocks breaking down, etc. However, these shocks didn’t move the meter for Bitcoin.
“We think the market likely needs more time to absorb the recent 30 month rally, which could produce lower prices. We don’t foresee new all time highs in Bitcoin for 2018, and unless data starts suggesting differently, we are expecting mostly sideways or lower price action.”
Demeester goes on to call 2018 a “shakeout year” for crypto, with a “lemon market in altcoins, regulators catching up, and infrastructure growing pains.”
On Tuesday we reported that the price of all but one – ETC – cryptocurrencies fell overnight between 1 and 4 per cent, with Bitcoin dropping down below $7,000 once again. At the time of writing, it sits at $6,494.
Another downward trend is the use of Bitcoin as a payment method, which has fallen sharply. Total revenue from 17 of the largest firms in the sector has reportedly dropped from $440 million in September 2017, to $60 million in May 2018.