Category: Price

Why Is Cryptocurrency Valuable?

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Cryptocurrency is an emerging asset that appeals to investors for various reasons. It has garnered the attention of mainstream media, and investors of all ages have been questioning whether to include cryptocurrencies in their portfolios.

At its peak, the cryptocurrency market was valued at nearly $3 trillion, indicating its significant value. Cryptocurrencies have made some investors wealthy and solved real-world problems for many people. Owning cryptocurrencies has offered investors numerous benefits.

 

What Makes Cryptocurrency Valuable?

Cryptocurrencies have intrinsic value due to several factors:

Supply and Demand
One such factor is the law of supply and demand. Cryptocurrencies that offer real-world solutions and convenience have a high demand, resulting in their increased value. Some developers have also limited the supply of their tokens to provide scarcity, further increasing their value.

Investor Sentiment
Investor sentiment is another significant factor. Effective marketing strategies create hype and generate interest in certain cryptocurrencies. Investors often perceive these cryptos to offer unique benefits, leading to bullish sentiment and even panic buying.

Company Stocks
Projects providing a platform for efficient and affordable cross-border payments often have their native coin powering transactions. As adoption of such platforms grows, the demand for their coins increases, resulting in their price rising. Owning a native coin is similar to owning a stock in a company, as the asset’s value increases with the company’s performance.

Underlying Assets
Investors also prefer projects that offer some form of insurance, such as backed assets. Gold-backed cryptocurrencies enable investors to exchange their digital assets for physical gold, while some cryptocurrencies are backed by the dollar.

Blockchain Technology
Besides hosting cryptocurrencies, blockchain technology provides transparent information sharing within business networks. Projects have used blockchain to build business models offering services like crowdfunding, smart contracts, healthcare, and non-fungible tokens. Blockchain’s decentralized nature appeals to investors looking to transact without intermediaries like banks or brokers.

 

What Makes Bitcoin Valuable?

Bitcoin is a portable digital asset that doesn’t require physical storage, as it is hosted on the blockchain and globally accessible to anyone with an internet connection.

Unlike fiat currencies, Bitcoin cannot be counterfeited. Its adoption as a payment method is constantly growing, with corporations such as Virgin Atlantic, Microsoft, AT&T, Home Depot, and Subway accepting it as an exchangeable currency.

While fiat currencies can be printed, only 21 million Bitcoins will ever exist, making it an extremely scarce asset. Unlike paper money, Bitcoin is durable as long as the blockchain is maintained, and its supply cannot be increased beyond the predetermined limit.

 

Are Cryptocurrencies a Good Investment?

Crypto investing offers several reasons for investors to be thankful. Cryptocurrencies have the potential to provide massive returns within short periods, making them a good investment. Additionally, investors can use cryptocurrencies for peer-to-peer transactions, allowing them to bypass third-party intermediaries.

Investors who are curious about what makes Bitcoin valuable will find that it is portable, scarce, acceptable as a payment method, durable, and fungible. However, other cryptocurrencies also possess these features, and investors can use a Bitcoin IRA to search for those assets.

 

Benefit from Cryptocurrency Use Cases

Cryptocurrencies have simplified transactions by enabling the exchange of goods and services without intermediaries. Blockchain technology has opened up new industries, allowing projects to build business models that solve real-world problems.

The intrinsic value of some cryptocurrencies has provided significant returns to investors. Cryptocurrencies offer advantages over fiat currencies, such as scarcity, durability, and fungibility, and do not require physical storage and cannot be counterfeited.

Investors who are interested in learning more about different cryptocurrencies can search for them on .

 

Frequently Asked Questions:

 

Q: Why do cryptocurrencies have value?

A: Cryptocurrencies can be used as a means of exchange for goods and services and can also be used as an investment. Investors can also earn interest on their cryptocurrencies.

Q: How does cryptocurrency derive its value?

A: Cryptocurrencies derive their value from their use cases. A valuable cryptocurrency solves real-world problems and provides investors with returns. Sentiment also plays a role in determining a cryptocurrency’s value.

Q: What factors contribute to the value of a currency?

A: A currency’s value is determined by supply and demand, which is affected by things like inflation, interest rates, money supply, and capital flow.

 

Cryptocurrency chart shown on a mobile device in the background, with a physical Bitcoin in the foreground.

How to Read Cryptocurrency Charts

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Knowing how to read cryptocurrency charts is incredibly useful for traders to find opportunities in the market. Performing technical analysis doesn’t have to always be complicated — you can start by recognizing a few chart patterns for information. This article will walk you through how to read crypto charts so you can make informed trading decisions and track the direction of prices.

What are Cryptocurrency Candle Charts? 

A cryptocurrency candle chart shows the price movements of crypto over a time period. These price movements are displayed in the form of candles, which have a rectangular body shaped like a bar representing the opening and closing price, as well as a line indicating the low and high price of the day. Shading (like red or green) applied to the body of the candle indicates whether the close was higher than the open or vice versa.

Understanding Cryptocurrency Charts 

To understand crypto charts, you need to familiarize yourself with several trading terms. Here’s a rundown of some of them. 

Trading Pair

Cryptocurrencies that are traded for one another through an exchange are referred to as trading pairs. Because some cryptocurrencies may only be bought using other cryptocurrencies, trading pairs are useful in facilitating trading. A trading pair can provide access to other cryptocurrencies that cannot be bought directly with fiat money.

Current Price

Current price refers to the last traded price of a cryptocurrency. Because cryptocurrencies trade live 24 hours a day, the prices fluctuate. When you place a trade (buy or sell), chances are you may not buy at the last traded current price, but possibly slightly higher or lower depending on supply and demand. 

High/Low 

High/low price levels are the highest and lowest points a cryptocurrency trades within a specific time frame. Bear in mind that high/low varies across time frames. For example, the high in a one-minute chart would differ from the high in a weekly chart. 

24-Hour Volume

The 24-hour volume indicator measures the total volume of a cryptocurrency traded in the last 24 hours. Traders use this indicator to measure the market’s interest in a particular cryptocurrency. If the 24-hour volume is high, it indicates high interest in the cryptocurrency. A low 24-hour volume indicates low interest.

Unit of Time

This is the timeframe of trading activity on a cryptocurrency displayed on the chart. For example, a one-minute chart displays the price movements and actions of the cryptocurrency every minute. Likewise, a 15-minute chart displays the price movements of a cryptocurrency every 15 minutes. You can select and adjust the unit of time you want from as little as one minute to as much as a month.

Price Chart 

This shows the fluctuation in a cryptocurrency’s value over time. In a price chart, a candle or line is used to represent the price movement of a cryptocurrency over a period. The timeframe can also be adjusted depending on your trading strategy or technical analysis.

Trading Volume

This indicator shows the volume of a cryptocurrency that has been traded within a specified timeframe. It is usually displayed in bars and correlates with the pattern on the price chart. Long bars indicate high trading volumes compared to other periods, while short bars indicate lower trading volumes. A green bar indicates a price increase, while a red bar indicates a price drop. 

How to Read Crypto Chart Trends and Indicators

The ability to read a crypto chart is essential to trading profitably. To do this effectively, you need to be able to recognize trends and use chart indicators. 

Crypto Chart Indicators

Crypto chart indicators give you clues about how the market is trading a particular cryptocurrency. Traders use chart indicators to visualize the price action of a cryptocurrency, enabling them to determine the best way to trade. Here are some indicators that can help when reading crypto charts.

Moving Averages

A moving average is the average price of a cryptocurrency over a set period. Because they show the average price of an asset over time, moving averages filter out short-term fluctuations. As a result, moving averages help identify overall trends and establish key support and resistance levels that can determine entry and exit points.  

Support and Resistance Level

Support and resistance are price levels on a chart that indicate a cluster of buying or selling, often appearing to limit the price range.  

Supports are usually price levels with a concentration of buy orders. The price of the cryptocurrency may drop until it reaches support levels and regularly rebound from those levels. Support levels can be entry points for traders. Resistance levels are conversely the levels with a high concentration of sellers (or sell orders). Traders usually use resistance levels to determine their exit points.

These zones may be technical or psychological. Technical support and resistance zones are those that are established by chart patterns and trend lines. Psychological zones are those that are influenced by human emotion, such as round numbers, 52-week highs and all-time highs and lows.

Crypto Chart Patterns

Chart patterns are distinct shapes within a price chart that are formed based on the trading activity of an asset within a certain timeframe. Chart patterns give an indication of what the price may do next based on its previous activity. These appear in cryptocurrency charts and offer specific insight.

Shooting Star 

A shooting star is a candlestick pattern that forms when the price of the security opens, rises significantly, but then closes near the open price. It is usually regarded as a sign of bearish reversal by traders because the closing price ends up converging toward its lower opening price. This usually suggests that sellers (bears) have taken over, and prices of the asset may drop.

Hammer 

A hammer is a candlestick pattern that occurs when an asset trades significantly lower than its opening but rises to near the opening price. The candlestick forms a hammer-like shape in which the lower wick (the line beneath the candle) is longer than the size of the candle body. Because the asset’s price fell below its opening price but later rebounded, buyers regained control. Hammers are regarded as a bullish reversal candlestick pattern.

Head and Shoulders 

Head and shoulders is a candlestick pattern that indicates a trend reversal. There is a peak (shoulder), then a higher peak (head) that is followed by a lower peak (shoulder). Traders use the head and shoulders to predict a shift from a bullish pattern to a bearish pattern. Head and shoulders patterns can also form in an inverted position signaling a shift in trend from bearish to bullish.

Wedges

A wedge occurs when the price range (distance between high and low prices within a certain time frame) shrinks and becomes narrower. When trend lines are drawn above and below the price range, they converge into an arrow shape. Traders use wedges to spot a reversal or continuation of price action.

Learn Charting For Crypto (cryptocurrency charts)

Crypto trading is fast-paced, and any type of edge is useful. Through the use of technical indicators, it is possible to recognize trends and patterns in price charts. However, no single chart pattern can always accurately predict the direction of prices. To get the best out of your chart reading, try to use a combination of different indicators. 

Frequently Asked Questions

What is a good indicator for crypto?

A good indicator for crypto is using a combination of indicators, although they aren’t guaranteed to predict price action. 

How do you analyze cryptocurrency before buying?

You can analyze cryptocurrency before buying by looking for support and resistance levels and reviewing technical indicators. You can also consider crypto project fundamentals and relevant news events.

Where can I find a crypto chart?

There are a number of advanced charting tools that exist. The BitcoinIRA desktop and mobile app contains pricing information and charts users can take advantage of.

A folding card displaying the text "Retirement Planning" and financial graphs and imagery. Used to head a blog article about crypto retirement planning.

Planning for the Realities of Retirement (and How Crypto Can Help)

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Retirement has never been easy, yet has remained attainable for Americans willing and able to carry out the savings, responsibility, and consistency required to execute a sound investment strategy over years (and decades). This results in, ideally, comfortable twilight years with a minimal drop-off in lifestyle, and the continued ability to carefully manage the dollar value of investment with income distribution for the remainder of life.

While millions of Americans still retire yearly, it has become apparent that the current economic and fiscal climate introduces new challenges for those seeking a picturesque post-work life, and that these challenges are cross-generational. High inflation, volatile markets, and rising interest rates (not to mention the associated scarcity and cost of credit) have rendered the current decade’s approach to retirement undoubtedly more complicated, and less “autopilot” than many would like.

The Current State of Retirement

In its most recent Retirement Survey & Insights Report, Goldman Sachs Asset Management uncovered a number of illuminating (and in some cases concerning) insights regarding the capability of typical Americans, be it Generation X, Baby Boomers, or Millennials, to save for and achieve a comfortable retirement. Immediately notable is the discovery that 51% of current retirees stated they live on below half of their pre-retirement income; this pairs snugly with expert analysis concluding that in many cases, up to 70% of pre-retirement income is required to achieve comfortable retirement. If today’s retirees have to save half their income in order to make post-work life viable, what does that say for the chances of working individuals and the challenges they face tomorrow?

The report provided further insights. Outside of current retirees, a substantial portion of Generation X reported being “stressed” when it comes to managing retirement, with 51% responding they are behind schedule with their savings. While certainly achievable, the schedule and margin for error in saving for retirement through purely traditional means has become so narrow, that mishaps, life events such as health costs, or any unexpected significant expense can often stand to delay, or even derail, retirement goals.

It’s known that inflation reached as high as 6% and beyond in the wake of COVID-19, but some independent research groups estimate, using traditional or deprecated CPI calculations from the 80s and 90s rather than the hedonically adjusted or otherwise tweaked current measurement, that inflation post-COVID-19 may have even breached 10%, and approached 15%. If the performance of your investments can’t pass muster in comparison, retirement becomes more difficult.

How Crypto Can Help You Retire (Retirement Planning)

Thankfully new problems bring new solutions, and the response on the part of technologists and innovators to bank failures and money-supply expansion (both in 2008 and now) has been the creation of decentralized, immutable, and relevantly, high-performing cryptographically secure currencies and digital assets, known as cryptocurrency. Bitcoin’s staggering lifetime returns are no secret at this point, and investors want to know  – how can crypto help aspiring retirees ? Both the retired and the still-saving face modern challenges that impede their ability to generate income, be it inflationary pressures, healthcare costs, or even potential reductions to Social Security (which, according to the earlier-cited alternative statistics, in real terms occur each and every year).

While investors can’t turn back time and invest in Bitcoin from day one, they can leverage this powerful asset class in their favor by combining its high-performance and modern advantages with tried-and-true retirement tools such as self-directed Individual Retirement Accounts (IRAs). Currently, we may sit at the tail-end of the “winter” phase of the crypto market cycle – Bitcoin stands just below 60% off its record highs, while altcoins average between 70% and 90% down.

What was dismissed by some as untenable volatility during 2022 has, once again, reliably transformed into opportunity for all investors, seeking retirement or otherwise, to transcend high inflation and contemporary fiscal challenges. A recent BitcoinIRA survey found that investors remain bullish on cryptocurrencies; 51% of survey respondents are considering investing in crypto as part of their retirement portfolio, while 27% have already invested.

While speculating on new levels an investment may reach is no-doubt risky, instead dollar-cost averaging into proven crypto assets that stand to achieve significant appreciation merely by returning to prior levels in an upcoming bull cycle is a different concept entirely. Extraordinary challenges call for extraordinary strategy, and providers like BitcoinIRA can help those striving for retirement invest in cutting-edge, historically performant digital assets using tried-and-true, safe, and proven retirement vehicles.

Bitcoin $30k: the important price milestone for Bitcoin, $30,000, is shown in large text on an orange background, with an image or a rocket.

Bullish BTC Charges Toward $30K as Macro Tides Turn

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Despite strong year-to-date price appreciation over 77% and a mid-April $30k peak for Bitcoin after the frosty crypto winter of 2022, BTC and general crypto-wide performance has broadly lagged since late March of this year. That may be all about to change on the tail of recent Federal Reserve rate hikes, a projected friendlier macro environment, and current events that play squarely to the inherent strengths of the world’s #1 cryptocurrency.

On Wednesday the Fed signaled its commitment to shrinking inflation with yet another 25 basis-point rise to the federal funds rate. Despite this, as is often the case, markets at least in-part took the action not as a marker of continued economic challenge, but instead as a harbinger of an inevitable pivot to avert recession. As a result, crypto rose slightly, and stocks, banking sector aside, dipped then recovered to avoid any particularly significant decline.

The market interpretation is not entirely unfounded – CME Group’s FedWatch probabilities indicator agrees, suggesting “no change” as the most likely state of rates for June and July, followed by a 75% chance of slashing in September. This would conveniently occur when approximately six to eight months remain before the renowned Bitcoin halving event, a historical signal of eye-watering crypto bull runs to come. These tend to last approximately 18 months and culminate with blowoff tops, memes (already begun), and NFT mania of epic proportion.

Of course, such charges are always led and must be affirmed by Bitcoin, the asset to which all crypto liquidity is tied, and thus by which all digital currency price action is guided, whether we like it or not. Thankfully, beyond just reverse-psychology interpretation of Federal Reserve behavior, recent news of bank failures that spooks traditional markets simply emboldens Bitcoin’s entire raison d’etre. Beyond broad investor sentiment, there remains no technical reason why a decentralized, trustless, and peer-to-peer store of value is required to move in price alongside its polar opposite. In fact, when it comes to the dollar, Bitcoin’s tendency has been to do just the reverse.

When banks become illiquid or fail, but rate hikes and credit squeezes mean money printing can’t save the day, Bitcoin remains 100% backed by computational power and the perpetual hard energy (approximately 127 TWh yearly) required to mine it. From a broad view, it doesn’t particularly matter what the news cycle throws at Satoshi Nakamoto’s invention, as price has historically and consistently followed hash rate, and the mathematics and incentives of the Bitcoin protocol ensure this phenomenon can continue.

If 2008-like events continue to unfold with regard to the banking sector, investors and holders of currency in general may have a decision to make. Who do you trust – financial institutions stuck holding government debt, the government itself with its steadfast but limited FDIC, or the ability to hold an asset that requires you trust nobody at all? While proclamations of an imminently failing U.S. dollar may often be hyperbolic, the history and average lifespan of fiat currency is clear, suggesting at the very least, USD and some of its modern brethren may be living on borrowed time.

Bitcoin reaching $30k this market cycle has been described as a key battle line, and once this resistance becomes support, most signs suggest Bitcoin will proceed to do what it has always done. As the saying goes to describe the Bitcoin network’s unconcern for the ongoing mania of current events: tick-tock, next block.

Several physical Bitcoin, from small to large, with a price uptrend arrow displayed above them.

What’s Behind the Recent Crypto Rally?

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Bitcoin and Ethereum have seen significant price gains since the start of 2023, and especially this past weekend. The predominant cryptos jumped over 12% beginning Friday, and more than 30% from December lows, bringing them over $23,000 and $1,500, respectively. While crypto winter has been in effect for over a year now, the end was not necessarily in sight before the recent leg up. What changed, and what may be driving the crypto rally and improved outlook? Read on to find out. 

The obvious catalyst of good news was the recent Consumer Price Index reading for December 2022, dropping 0.1% from the prior month. While it may not sound like much, more important was the year-over-year (y/o/y) calculation – a 6.5% increase in inflation, versus 7.1% y/o/y for November. While still a high reading, it signals a significant improvement, and suggests the Federal Reserve may not need to hike interest rates so aggressively throughout the remainder of 2023, if at all. Naturally, the portent of looser monetary policy, even if up to a year away, is positive for cryptocurrency, an asset class often seen as a hedge against inflation. 

Macro conditions aside, there’s also a crypto-specific reason for Bitcoin and altcoins’ new-year price performance. Difficulty, which measures how demanding it is for mining hardware to create a block (and thus new Bitcoin) on the network, rose to its all-time high today, reaching 37.59T. This represents more than a 5% increase in the last 24 hours, and more than a 10% increase over the weekend. Increasing difficulty tends to signify network strength, which means price typically follows – this has been consistently true throughout Bitcoin’s history. Because Bitcoin is the largest cryptocurrency, when it rises in price, altcoins usually follow suit. 

The crypto rally hasn’t shown signs of slowing down, though it’s not a certainty the bear market has ended just yet. Les Borsai, chief strategy officer at crypto asset manager Wave Financial, stated that “we might already have hit” the crypto market bottom, and cautioned that while “we could drop further…the macro environment is showing signs of easing and giving way to a possible market reversal.” While a Fed pivot could still trigger one last dip, the improved outlook for 2023 thus far has been a positive sign. If and once a final dip occurs, recovery historically follows. 

While it’s never completely clear where prices may go next, a new year often brings new price action, and 2023 has already lived up to this mantra. Ultimately, top cryptocurrencies tend to recover from drawdowns because their value proposition as decentralized digital money remains intact regardless of market movements. Both crypto traders and long-term investors who are saving for retirement can get more insight into crypto price action on the Bitcoin IRA crypto blog and news page.

The words “crypto price predictions” display next to a graph with a Bitcoin on top

Bitcoin & Crypto Price Predictions

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Inside This Article:

Crypto Market Predictions

Cryptocurrencies and blockchain technology are being steadily integrated into everyday life. They enable the exchange of money around the globe in seconds and at a fraction of the current cost, and can boost operational efficiency across many industries.

Cryptocurrencies, starting with Bitcoin, have existed for more than a decade, and are being recognized by institutions and regulatory bodies as viable methods of doing business. Today, regulated exchanges facilitate the trade of more than $100 billion in cryptocurrencies every month. In addition, traditional brokers have also gained exposure to market action with the creation of derivatives like futures and options.

Crypto’s quick adoption has led many experts in the field to believe that cryptocurrencies can grow much more. That said, recent market developments have brought on a crypto winter, a time when cryptocurrency prices drop.

Over the last year, the decline in the value of cryptocurrencies has likely been brought about by the drop in the general markets. Cryptocurrencies are not fundamentally tied to traditional financial markets, but many institutions and large investors began purchasing cryptocurrencies near their recent highs.

Because these were speculative investments with a large amount of risk attached, institutions and speculators have significantly reduced their cryptocurrency holdings in part to cover expenses elsewhere due to the effects of inflation on the economy.

As institutions exit their losing positions, the price of cryptocurrencies could stabilize and eventually reverse the market. Savvy crypto investors not only monitor live Bitcoin and cryptocurrency prices, but also track analyst price predictions. To help investors with their research, we’ll review the latest crypto price predictions for some of the most popular currencies, including Bitcoin, Ethereum, and Chainlink.

Bitcoin price prediction Bitcoin Price Predictions

Bitcoin’s (BTC) position as a pioneer of this new asset class has caused it to be the most highly traded cryptocurrency on the market today. Therefore, speculation on the movement of its price has been analyzed by some of the most respected banking institutions in the industry. Here is what they had to say, including crypto price predictions specific to Bitcoin.

During 2022, institutional investment firms reported great outlooks for the price of Bitcoin. JP Morgan reported having a long-term outlook of $150,000 for Bitcoin in February of 2022. In January of 2022, Goldman Sachs saw Bitcoin replacing gold as a hedge, and its price rising to $100,000.

More recently, experts from Deutsche Bank and crypto analyst Wendy O predicted Bitcoin prices ending 2022 between $10,000 and $28,000 amid current volatility – this did in fact play out. However, outlooks into 2023 are much more positive, as Jurrien Timmer of Fidelity stated that “It’s more realistic for bitcoin to be in the $40,000 to $50,000 range in the next year.”

Controversial crypto veteran and former Bitcoin maximalist Richard Heart was among the first to present the now-popular bear case for Bitcoin as far back as 2021. Heart has stood by the prediction, coining the phrase “$11k and pray,” signifying the price to which he feels Bitcoin must drop before it can rebound and pursue new highs.

The digital asset price-tracking website DigitalCoinPrice* weighed in with both short- and long-term predictions for Bitcoin’s future price action. The publication predicts Bitcoin will make a partial recovery in 2023, reaching $43,389, before climbing closer toward all-time highs in 2024. The site also stated that Bitcoin will finally reach a new all-time high of $75,667 in 2025, and rise to $242,604 in 2030.

For 2023, many analysts are bullish on the price of Bitcoin with multi-year targets that match JP Morgan’s long-term outlook.

Ethereum price prediction Ethereum Price Predictions

Ethereum (ETH) is the second most traded cryptocurrency next to Bitcoin. Its blockchain was designed to facilitate transactions faster than Bitcoin. Ethereum recently underwent a merge that changed it from a proof of work consensus model to proof of stake. This change has greatly sped up the rate of transactions, as well as improved environmental impact, making Ethereum more viable for worldwide adoption as Web3 applications become mainstream.

Analysts’ crypto price predictions are generally bullish on Ethereum following 2022. However, NextAdvisor found that prominent crypto analysts, including Wendy O, had ranges between $750 and $7,500 for the close of 2022 that also proved accurate. The discrepancy is likely due to a lack of clarity about what the merge will bring.

Simon Dedic, the founder of the Blockfyre digital asset analysis group, also expressed short and longer-term Ethereum outlooks. He previously predicted that Ethereum would reach $9,000 after the return of the altcoin bull run. He correlates this to Bitcoin hitting the $150,000 price point one day. As for the short term, Dedic believes we’ll see an $800 Ethereum price.

Bloomberg Senior Macro Strategist Mike McGlone refrained from making a specific price prediction, but stated he believes Ethereum is a top candidate to continue outperforming Bitcoin. He also assessed that $1,000 remains a strong support level for the number-two largest crypto, a level it has largely cleared even in the current downturn.

For 2023, CoinPedia is looking for $1,866.79, and Coin Price Forecast* expects $1,568. Changelly reported an average trading price of about $2,000, while Benzinga found predictions from Tekedia looking for over $3,000.

Longer-term outlooks foresee the $4,000s in 2025, and expect price to reach $10,000 by 2027.

Chainlink price prediction Chainlink Price Predictions

Investors and speculators are interested in Chainlink (LINK) because it was developed to support honesty in blockchain transactions. The project works secondarily to and in tandem with blockchains, ensuring that the information used to make transactions on a primary blockchain like Ethereum is truthful.

For example, if you use a betting app on Ethereum to bet on a team winning, the app could use Chainlink to verify the data that the winning team, in fact, won, and distribute your payout on the bet. In addition, companies like Google Cloud, VISA, and SWIFT have recently become part of the Chainlink ecosystem. This gives Chainlink many use cases wherein blockchains are being used to facilitate and record transactions, and is why many analysts are optimistic about Chainlink prices over the coming years.

Deep learning technology and prediction site Coin Price Forecast* shared its Chainlink outlook. In the first half of 2023, it expects the price of LINK will climb to $7.30, and reach $7.36 by year-end. By 2025, it anticipates the price reaching $8.38, and retracing slightly to $8.18. Looking longer-term, it stated that “Chainlink will start 2029 at $19.02, then soar to $20.24 within the first half of the year, and finish 2029 at $21.45, about +222% from today.”

Some analysts predicted prices exceeding $10* to complete 2022, with gains thereafter in the new year. These predictions proved ambitious, with LINK closing 2022 near $5.50. The 2023 prediction range is currently priced between $11.50 and $13.20. DigitalCoinPrice* projections for 2025 show a graduated increase to $19.16. And in 2030, Chainlink could reach as high as $79.40, an almost 1,200% gain from its price today.

Due to market variations, price quotations and predictions are subject to change. No guarantees are implied and prices quoted here are for informational purposes only and do not constitute an offer or financial advice.

*This source uses algorithms that update every day.

Bitcoin price discovery

Bitcoin Is In Price Discovery Mode. Can It Reach $100,000?

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Bitcoin is near its all-time high after 3 long years and it’s now reached “price discovery” and investors’ enthusiasm is increasing dramatically.

So, what is price discovery? And what is Bitcoin’s fair market price and is now the time to invest in crypto?

 

What Is Price Discovery?

In its simplest form, price discovery refers to the act of determining the proper price of an asset. It’s the market pricing of an asset – how many people are willing to buy it for the current price, versus how many people want to sell it at the current price. The more buyers there are, the higher the price will go. If sellers decide they have enough profits, or they don’t anticipate more profits, they will sell – pushing the price down.

This constant back and forth between market participants is price discovery. It’s constantly happening regularly, but the term is often used at times of rapid price increases or decreases. But why?

 

Price Discovery and Supply and Demand

Price discovery is driven in part by supply and demand. The less of an asset there is, the more valuable it becomes as demand increases. This means sellers will be less willing to let go of their assets at a low price, while buyers will be more willing to pay a pretty penny in anticipation that the asset will continue to go up. How does this specifically relate to Bitcoin? Bitcoin is unique as far as supply is concerned. Other assets, like stocks, have a virtually infinite supply.

More stock can be issued at will, and stock splits can keep the number of shares increasing indefinitely. Because the supply of these types of assets is flexible, there will always be stock available for new buyers who want to own it.

Bitcoin, on the other hand, has a fixed supply; there can only ever be 21 million Bitcoins in existence. So, as more buyers enter the market, they will be increasingly reliant on a seller who is willing to part with their coins to own one. And likewise, as this demand makes it more likely for the price to increase, fewer sellers will be incentivized to sell before realizing their full profit potential.

 

What is Bitcoin’s Fair Price?

Because Bitcoin has such a limited supply, there isn’t enough for everyone in the world to own one.

There are 46.8 million millionaires in the world today. They represent a small portion of the population, but even if each one of them wanted to own just one Bitcoin, there wouldn’t be enough for that to happen.

Add in the rest of the world’s population – over 7 billion people, along with central banks that rely on trillions each year to function, and businesses that purchase millions of dollars of Bitcoin, and it becomes easy to imagine how Bitcoin’s limited supply is a driving factor in its recent price rise (see article: Bitcoin price predictions).

 

Conclusion

Price discovery is an important mechanism in all markets. It’s the highlight of Bitcoin news now because institutions and other buyers are waking up to the fact that there is a very limited supply of what may be the financial future, and the price is rising rapidly as a result. The financial system is changing, and the same is true for investments, savings,  and the way we transact globally.

Ultimately, it could be a long time before Bitcoin’s price settles at what some could call its “fair” price – but $100,000 per coin, may just be the beginning.

 

 

Recommended article: What is Bitcoin?

Invest in Bitcoin 20k

Bitcoin Hit $20,000. Is Now The Time To Invest In Crypto?

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“Everyone should put 2% to 3% of their net worth in Bitcoin,” says billionaire former hedge fund manager, Mike Novogratz. 2-3 percent may seem rather tame, as investors that are seeking high rewards can invest more than a few percentages into cryptocurrencies. Despite Bitcoin being in the news for its new highs and support from individuals and massive companies alike, this Bitcoin rally has been a lot quieter than 2017, but Novogratz believes there is evidence supporting Bitcoin prices are better than ever.

One gold industry insider believes Bitcoin could increase 30x. “In the next five years, I can see gold at $4,000, so that’s double. But if gold is at $4,000, Bitcoin is probably somewhere between $300,000 and $500,000, so that’s a 20, 30x,” says Gold Bullion International co-founder, Dan Tapiero. “There is no question that Bitcoin is going to outperform gold,” he stated.

 

Could Bitcoin reach $100,000 next?

There are many crypto experts with Bitcoin price predictions and some expect it to surge to over $100k by the end of 2021, including popular investors Anthony Pompliano and Mark Yusko

The bull run in 2017 was primarily driven by retail investors, but this time it may be driven mainly by institutional support. Corporations such as PayPal, Square, MicroStrategy, and The People’s Bank of China are getting involved in the cryptocurrency revolution. This could just be the beginning of a far greater cryptocurrency rally as crypto has been consistently earning more recognition and adoption.

Consider setting up a cryptocurrency IRA or 401k to add crypto to your retirement account today.

 

 

Recommended article: Bitcoin Breaks All-Time Highs, Now What?

Great News – Lower Rates In 2020

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Three Reasons Ripple Could Reach the $10 Mark By the End of 2018

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July was been a big month for Bitcoin, not least of which included Bitcoin reaching a two-month high as well as increased excitement surrounding the possibility of an upcoming Bitcoin ETF.

Similarly, Ripple has also experienced a lot of momentum last month. It was just announced that former US president Bill Clinton will headline Ripple’s Swell conference later this year, while Australia’s first regulated cryptocurrency exchange Independent Reserve also announced that it would be launching Ripple (XRP) trading.

Ripple is continuing to build its reputation as an innovative cross-border payments platform, and many crypto experts are bullish about its long-term price predictions. In fact, some pundits think the possibility of Ripple reaching near the $10 mark by the end of 2018 is very attainable. Here are a few reasons why.

Ripple Has a Growing Client Base

As of June 2018, Ripple has a reported 120 customers on its network including Bank of America, Credit Agricole, Mizuho Financial Group and Santander, and the Q2 report revealed that the customer base has continued to grow.

“We’re seeing customers like Western Union, Moneygram – they’re leaning in and using our tools to solve a payment problem. And this payments problem is truly measured in the trillions of dollars,” Ripple CEO Brad Garlinghouse said.

Ripple’s Global Head of Strategic Accounts Marcus Treacher also has a lot to say about the growing institutional interest in Ripple. “Blockchain technology is being adopted by the mainstream, including the biggest financial institutions in the world. They see value in our solution not only because it can increase their bottom line, but because it enables them to offer their customers an enhanced payments service, ultimately helping them to gain market share and free-up capital for other investments and business activities.”

Ripple Network is Scalable

One of Bitcoin’s biggest challenges is its lack of scalability. One Bitcoin block is mined every ten minutes, and the legacy Bitcoin blockchain only process 4-7 transactions per second. While the Lightning Network’s off-chain solution presents a powerful alternative, the technology is still in development.

Ripple, meanwhile, has already established itself as a platform that can support 1,500 transactions per second, ultimately scaling to handle the same throughput as Visa. In addition, Ripple transactions are far cheaper than Bitcoin: one Ripple transaction is a fraction of a cent, while Bitcoin transaction fees can range to nearly $30.

Financial institutions value quick and affordable settlement of transactions. Currently, international movement of funds can sometimes take  as long as 8 to 14 days. Ripple’s enterprise software solution xCurrent offers a critical advantage in that it enables banks to instantly settle cross-border payments with end-to-end tracking. With a reputation as the most demonstrably scalable blockchain, and an ever-growing list of clients, it seems very likely that Ripple’s price point will continue to rise.

Ripple Serves Many Practical Uses

Ripple has many use cases beyond the cryptocurrency XRP.

As discussed, there is the xCurrent cross-border payments solution, but there is also xRapid, which is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience, and xVia, which is for corporates, payment providers, and banks who want to send payments across various networks using a standard interface.

Perhaps one of the biggest biggest indicators that Ripple is headed for a price increase is the startup’s underlying belief about the importance of working with mainstream financial institutions, rather than against them. “Ripple has a grand vision of enabling an internet of value. For us, it’s how to catalyze that vision and connecting the repositories of value – those repositories are the banks. Those who are in the crypto community who view them as the enemy are an obstacle to their success,” Ripple CEO Brad Garlinghouse said.

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