fbpx
Money

Bitcoin Price Could Reach $64,000 In 2019: Fundstrat Analysis Predicts

The bitcoin price could reach $64,000 by the end of 2019, according to a new analysis of cryptocurrency mining economics.

The study, conducted by Wall Street strategy firm Fundstrat Global Advisors, argues that that the ratio between the bitcoin price and miners’ breakeven cost (P/BE) has proven to be a “reliable long-term support level” for the flagship cryptocurrency and that current and future mining infrastructure development will “underpin bitcoin price appreciation into year-end 2019.”

“We expect the mining economy to grow over the next several years, and project a BTC price of ~$36,000 by year end 2019 based on the historical average 1.8x P/BE multiple,” Fundstrat quantamental strategist Sam Doctor wrote in the report.

Doctor added that although $36,000 is the most likely target for the bitcoin price according to this analysis, it could end up anywhere in the $20,000 to $64,000 range depending on how the landscape develops over the next 18 months.

Even the lower end of that range represents a 113 percent increase from the current bitcoin price, while the more optimistic target represents a 583 percent surge. At the time of writing, bitcoin was trading at $9,375 on Bitfinex.

As CCN reported, mining firms have been rapidly scaling up their operations following last year’s prolonged bull market. Bitmain, the world’s dominant mining hardware manufacturer, is said to have made as much as $4 billion in operating profit in 2017, and Canaan — its largest competitor — is preparing to hold an initial public offering (IPO) that it believes will provide it with a $1 billion valuation.

Fundstrat has long been bullish on bitcoin. Founder Tom Lee has argued that, among younger investors, cryptocurrencies are rapidly replacing gold as the most popular “store of value,” and the firm has published a number of analyses that suggest the ecosystem will experience sustained long-term growth.

The firm has set its year-end price target at $25,000 for 2018 and has previously said that bitcoin could rise as high as $91,000 by early 2020.

This story originally appeared in CCN. Image courtesy of Shutterstock.

Join The Discussion

Trump's Plan To End Shutdown Falls Flat
Trump’s Plan To End Shutdown Falls Flat [Video]
World's 26 Richest People Own As Much As Poorest 50%
World’s 26 Richest People Own As Much As Poorest 50%
Thailand Signals Shift In Refugee Policy After Rahaf Mohammed
Thailand Signals Shift In Refugee Policy After Rahaf Mohammed [Video]
Brexit Plans In Chaos After UK Parliament Rejects Proposal
Brexit Plans In Chaos After UK Parliament Rejects Proposal [Video]
How To Buy Bitcoin Anonymously
How To Buy Bitcoin Anonymously
Number Of Bitcoin ATMs Hits 4,000 Globally
Bitcoin ATMs Hits 4,000 Globally-Why Is It Growing So Fast?
Is Bitcoin Building Support Above $3,500
Is Bitcoin Building Support Above $3,500?
Belarus Allows Traders To Buy Shares With Bitcoin
Belarus Allows Traders To Buy Shares With Bitcoin
10 Marketing Trends To Watch In 2019
10 Marketing Trends To Watch In 2019
40+ Video Marketing Statistics For 2019
40+ Video Marketing Statistics For 2019 [Infographic]
Emerging Email Marketing Trends To Survive 2019 And Beyond
Emerging Email Marketing Trends To Survive 2019 And Beyond [Infographic]
Visual Trends To Be Aware Of In 2019
Visual Trends To Be Aware Of In 2019 [Infographic]
The Latest Social Media Automation Rules In 2019
The Latest Social Media Automation Rules In 2019
4 Tips To Help You With The Constant Changes In Social Media
4 Tips To Help You With The Constant Changes In Social Media
Instagram's Testing Side-Scrolling Feed View, Similar To Stories
Instagram’s Testing Side-Scrolling Feed View, Similar To Stories
The 10 Best Instagram Tools For 2019
The 10 Best Instagram Tools For 2019
What Is Your Therapist Listening For
What Is Your Therapist Listening For?
Wish You Were Smarter
Wish You Were Smarter? These 4 Brain Hacks Can Help You Get There
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Your Environment May Affect Your Eyes More Than You Realize
Your Environment May Affect Your Eyes More Than You Realize
Trump's Plan To End Shutdown Falls Flat
Trump’s Plan To End Shutdown Falls Flat [Video]
Thailand Signals Shift In Refugee Policy After Rahaf Mohammed
Thailand Signals Shift In Refugee Policy After Rahaf Mohammed [Video]
Brexit Plans In Chaos After UK Parliament Rejects Proposal
Brexit Plans In Chaos After UK Parliament Rejects Proposal [Video]
Coming To Canada 'Worth The Risk,' Says Saudi Teen Refugee
Coming To Canada ‘Worth The Risk,’ Says Saudi Teen Refugee [Video]