The latest analysis done by Wall Street strategy company, Fundstrat Global Advisors has indicated that the price of bitcoin could possibly reach $64,000 by the end of 2019.
The research claims that that the ratio between the bitcoin price and miners’ breakeven cost (P/BE) is being considered as a “reliable long-term support level” for the popular cryptocurrency and that existing 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 said in the report.
Doctor added that even though $36,000 is the most prospective target for the bitcoin price according to this research, it could end up anywhere between $20,000 and $64,000 depending how the landscape matures over the next year and a half.
Even the lower end of that range marks a 113% gain from the current bitcoin price of a little over $8,900, while the more bullish target signifies a 583% surge.
Mining firms have been quickly scaling up their operations after last year’s extended bull market. Bitmain, the world’s foremost mining hardware manufacturer, is said to have profited by as much as $4 billion in operating profit in 2017, and Canaan — its fiercest competitor — is getting ready to hold an initial public offering (IPO) that it thinks would give it a $1 billion valuation.
Fundstrat has long been bullish on bitcoin. Its founder Tom Lee has claimed that, among fresher investors, cryptocurrencies are swiftly taking the place of gold as the most popular “store of value,” and the firm has released a number of analyses that proposes the ecosystem would experience extended long-term growth.
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