Wednesday , 27 September 2023

Bitcoin Is A Flash In the Pan – Will Crash to Approx. $1,800 In 2018 (+2K Views)

A Wall Street consultancy is predicting a massive crash in the cryptocurrency market this year.

The original article by Ogwu Osaemezu Emmanuel has been edited here for length (…) and clarity ([ ]) by to provide a fast & easy read.

Quinlan & Associates’ 156-page report titled “Fool’s Gold: Unearthing The World of Cryptocurrency” states that the current bitcoin price above $14,000 is a bubble and does not reflect the true worth of the cryptocurrency and makes a case for bitcoin dropping to $1,800 by December 2018.

Below is an illustration of the consultancy’s prediction:


The report reads, in part:

  • “As an asset, we valued Bitcoin using a cost of production approach and a store of value approach, resulting in values of $2,161 and $687 respectively. To value BTC as a currency, we estimated its utilization for both legal, retail transaction payments, as well as payments in the black market. After significant testing, we calculated the price of BTC to be $1,780.
  •  “Despite fulfilling most of the characteristics of a traditional fiat currency, cryptocurrencies are largely being utilized as speculative investment assets, leading to considerable volatility in their value” …[maintaining that] the price of bitcoin is just a flash in the pan and will crash in 2018 to the $1,800 price region if the cryptocurrency is not officially adopted as legal tender.
  • “While we anticipate valuations to decline in the short-term in response to the widespread unwinding of the digital currency space, the price of utility cryptocurrencies is likely to recover and dominate the market in the long-term.”
  •  and the fall of bitcoin would in turn collapse the total cryptocurrency market capitalization to $223 billion which is a dreary 70% drop from its current position around $740 billion.
  • That being said, it still sees room for growth after the crash for the cryptocurrency market as a whole…[forecasting that Bitcoin] will rebound — driven by those cryptos with a clear utility — and reach $407 billion by 2020.

In the short term, Quinlan Associates sees nothing but a period of a critical bloodbath for bitcoin and the crypto ecosystem as a whole…

The firm’s long-term outlook for bitcoin is even more dreary. According to the report, it sees bitcoin trading at just $810 in 2020!

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

Related Articles From the munKNEE Vault:

1. Bitcoin: This Is More Than A Dip; This Is Initial Plunge Into A Bear Market

Bitcoin is done, finished, and anyone thinking that they have gotten hold of a bargain here, unless they are an artful short-term trader, is going to get their head handed to them on a plate – and it will be the same all the way down, as it drops lower and lower. At the end of the day Bitcoin is just a worthless line of code that fools have been jockeying to buy and overpay for.

2. How Much, If Anything, Should You Allocate To Bitcoin In Your Portfolio?

A lot of people think cryptos are in a big bubble. They’re some of the most volatile asset markets have ever seen and, with so many different types of cryptos out there, it can be hard to know how much of your portfolio you should allocate to any one of them so today, I’m clearing up the confusion.

3. Use This Chart to Time Your Investment In Bitcoin

We can expect bitcoin to begin to trade along other typical stock market patterns, like seasonality, next year, and this chart will be one I use to time any investments into it.

4. Bitcoin: Answers To 7 Questions You Were Too Embarrassed To Ask

While almost everyone has heard of Bitcoin at this point, many people are fuzzy on the details: what is a bitcoin, exactly? How do I buy some? What would I use it for? Here are the answers to those and a few other questions you were afraid to ask.

5. Here Are All The Ways You Can Buy, Trade, and Invest In Bitcoin

Trading bitcoin may still not be as simple as trading most stocks, but it has made huge strides toward becoming a mainstream investment in 2017. Here’s a look at all the ways traders can play bitcoin and what may be coming next.

6. Bitcoin: Plan Your Exit Strategy NOW – Don’t Wait Until the Stampede Starts

The above are the questions you need to be asking now, during the euphoria stage of a bull market. I’m not calling the top in bitcoin.

7. Bitcoin Could Reach $40,000 By the End of 2018 & Ethereum Could Go To $1,500!

Below is a asset bubble chart showing that bitcoin is now the biggest bubble in history, having surpassed the Tulip Mania of 1634-1637.

8. Bitcoin: Total Wipeout Alert

The pattern on the Bitcoin charts has all the hallmarks of a final terminal blow off that will be followed by a catastrophic wipeout and probably soon…The inexperienced get rich quick merchants who have been flocking in droves to Bitcoin in recent weeks will be vaporized.

For all the latest – and best – financial articles sign up (in the top right corner) for your free bi-weekly Market Intelligence Report newsletter (see sample here) or visit our Facebook page.