Bitcoin supporters are seeing 2017 as a very positive year owing to a pool of factors. From Trumps presidency to EU – led bail outs, improving adoption to increasing investments, the market dynamics look very favorable for the price. Many mainstream groups have openly come out with their support towards the cryptocurrency and discussed about the possible factors influencing their decisions. Bitcoin has recently touched its year’s high and has still been on a bullish path. Going strongly into the next year, let’s look into the predictions centering Bitcoin and possible investment opportunities:
The Trump Factor:
Trumps economic policies as per his Presidential Campaign, look very favorable for the growth of Fintech services. Especially Trump promised fiscal spending binge might add to approximately $20 trillion of U.S National Debt. This would triple the current U.S budget deficit from about $600 billion to $1.8 trillion. The move would cause the growth and inflation to increase unproportionately. Consequentially this would result in a hike in the interest rates and might see US dollar soar new heights. The economic fabric would be disturbed on a hike and would have a significant impact on the emerging markets and China in particular. To get away from the rippling effects of such impact, people would move to invest in cryptocurrencies and opt for alternate payment systems.
The EU Fall Out:
Post the housing collapse and its crippling effects; the European Union has experienced real turmoil in terms of ‘Debt Crisis’. Luckily Greece will receive a short term debt relief from Eurozone creditors to stay afloat, though IMF was not on board. Bad lending practices have landed Italy in the same zone, with people voting against constitutional reforms. Italian Prime Minister Matteo Renzi is now poised to resign after suffering the referendum defeat. With so much turmoil in Eurozone, next year is going to be very unpredictable and would see European commodity prices waver with high volatility. Historically with events like Brexit, where European commodities tanked, Bitcoin prices soared proportionately indicating the inflow of funds. Hence a similar move can definitely be expected for any of these eco-political events.
Saxo Bank predictions:
Saxo Bank is a Danish Investment Bank that has been prominent since 1992. Earlier CEO of Saxo, Lars Seier Christensen was personally vested in Bitcoin and hence the firm took a keen interest in cryptocurrencies. According to their recent prediction list, Saxo bank says that Bitcoin price might very well surpass $2100 in 2017.
Saxo explained that:
“If the banking system as well as sovereigns such as Russia and China move to accept bitcoin as a partial alternative to the USD and the traditional banking and payment system, then we could see bitcoin easily triple over the next year going from the current $700 level to +$2,100 as the block-chains decentralised system, an inability to dilute the finite supply of bitcoins as well as low to no transaction costs gains more traction and acceptance globally.”
This is also backed by Trump’s policies, Russia’s steps to legalize Bitcoin after a temporary ban and many other factors that are favorable.