The world’s number one digital currency has climbed another 5% topping the $12K mark, according to CoinMarketCap.
For reference, Bitcoin’s all-time high was about $20K. One of the reasons for the recent sharp peak was the news about Singapore proposed abolishing the value-added tax for transactions with digital assets, explains Andrei Khokhrin, CEO of Ivolga Capital.
“This news alone caused a 30% surge in Bitcoin activity – and a nearly 11% leap to $12,700,” the expert notes. “At present, the crypto market has high potential for further growth, but the Bitcoin rate is controlled by large players, and it is extremely difficult to make a forecast for super-high-risk assets. Other altcoins have not made significant rally, except for Ethereum, XRP, and Litecoin; Waltonchain, ICON and Comodo have lost in value.”
With cryptocurrencies’ increasing popularity, the most likely scenario is their continued growth to $13K by the end of the summer. Most players are experiencing the loss-of-profit syndrome and selling off their assets for fear of collapse to as low as $8,700. By mid-September, a sharp decline to $10K is expected.
Another negative factor is Facebook reports on South Korean regulator calling cryptocurrency a threat to the banking system, and China’s claims to create an alternative cryptocurrency, Andrei Khokhrin notes.