Bitcoin prices rebounded Monday, rising to the $8,745 area, but that modest rise is not stopping some of the cryptocurrency’s supporters from issuing some bullish forecasts.
Bitcoin prices surged 35% in April and are flirting with the psychologically important $10,000 level, an impressive rebound from a decline that saw the king of cryptocurrencies slump more than 60% from its December peak around $20,000.
Some cryptocurrency market observers believe that if bitcoin can make it back to $10,000, rallies fromt there could be significant. Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.
“We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range,” Sam Doctor, head of data science research at Fundstrat, said in a report,” according to CNBC.
Bitcoin Economics
There is significant room for growth in the cryptocurrency universe. Recent data suggest a small amount of American investors own any digital currencies and, after bitcoin, the numbers of crypto ownership dwindle.
Some bitcoin bulls believe the cryptocurrency can return to $20,000 or even move to $25,000 as soon as later this year.
“However, the economics of bitcoin mining likely create a support level for the cryptocurrency, Doctor said. He said bitcoin miners are more likely to hold bitcoin as its price falls to break-even for operating costs, and sell as its price rises, leading to greater profits,” reports CNBC.
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A key issue with bitcoin economics is the break-even price for miners. If that price is high, some miners could be pinched, but new technologies can potentially lower the break-even price, a factor that could boost bitcoin prices in the open market.
“As of May 6, Fundstrat estimates the cash break-even price for the older Antminer S7 model is $6,003 per bitcoin, and $2,368 for the newer Antminer S9,” notes CNBC.
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