Fundstrat Global Advisors: Falling mining costs drive Bitcoin to $ 36,000 by the end of 2019

in cryptocurrency •  7 years ago 

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A report by Fundstart Global Advisors published this week promises bitcoin astronomical growth. By the end of 2019, the Bitcoin price is expected to rise to $ 36,000, the equivalent of just under $ 30,000. The driving factor for this is the falling costs of the mining industry. This was announced among others Fundstrat chief strategist Tom Lee. In the short term, however, he anticipates an increase in the bitcoin price for the coming days. The Consensus Conference, which will be held this weekend again, would have proven to be a decisive price driver in the past.

Good news for investors and Bitcoin owners: If it's up to Fundstrat Global Advisors , over the next few years , the Bitcoin price is set to explode and explode. In a report released this week, the New York-based research firm predicts the price to grow to $ 36,000 by the end of 2019. The cause of this optimistic forecast is the " Bitcoin Price to Mining Break Even Cost Metric " index consulted by Fundstrat . In essence, this calculates the Bitcoin price in relation to the costs that are spent on its mining. Due to decreasing mining costs, more efficient computing power and ever larger farms, the report adds:

"We believe that the current growth in computing power by the end of 2019 will result in a bitcoin price of just under $ > 36,000 [$ 30,000], ranging from $ 20,000 to $ 64,000 [$ 21,000 to $ 54,000]."

The thesis is supported by Fundstrats chief strategist Thomas Lee. He posted a summary of the report on his Twitter profile . Fundstrat's latest calculations coincide with his personal assessment , which he published in late April. In it Lee relies on a bitcoin trading price of $ 25,000 by the end of the year. He also assumes that the Bitcoin could be traded up to 2020 with up to 64,000 US dollars. He also argues with sinking mining costs as a price driver.

Overall, mining is considered an important factor for the Bitcoin price. Because the business with the computing power itself depends on electricity costs for the mining process. That's why more and more mining farms are moving north. This is where favorable mining conditions due to low temperatures, affordable hydro current and crypto-friendly laws lure . For example, more and more Chinese miners are currently pitching their tents in Scandinavia.

Fundstrat: Consensus Conference as Short-Term Turbo Course?

In addition to the medium-term perspective, Lee's report also predicts a short-term price increase. For example, Fundstrat's calculations suggest that this weekend's New York-based cryptomesse Consensus will provide a track sprint. This would suggest the comparative data of the past two years, so Fundstrat analyst Robert Sluymer in conversation with CNBC .

Since 2016, the biggest names in the scene have come together with important representatives from politics and industry at the annual New York Consensus Fair. More than 4,000 participants and 250 speakers are expected this year, including representatives of the US Securities and Exchange Commission SEC and CFTC and the European Parliament. Thus, the fair definitely has the potential to bring groundbreaking changes and innovations on the way.

Nevertheless, Sluymer received criticism from CNBC correspondents for his forecast. So this is a guess that is employed on only two comparable data points. The causes and background of market dynamics and macro trends, however, could not be determined in a single event.

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