Thursday, June 13, 2024

    Saxo Bank Officials Fear Bitcoin Will Crash to $1,000 Soon

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    It is always refreshing to see some new Bitcoin price predictions. The opinions are pretty divided on this front right now. According to Saxo Bank, the Bitcoin bull run will continue for quite some time. Reaching $60,000 per BTC is not entirely out of the question. However, one shouldn’t underestimate the developments in Russia and China. Both nations may collude to create a powerful competitor.

    Everyone would like to see a Bitcoin price of $60,000 at some point. It would triple the current market cap and valuation of all bitcoins in circulations. Right now, such a move seems highly likely, according to Saxo Bank. Investors are getting used to tying up money in cryptocurrencies rather than traditional vehicles. The launch of Bitcoin futures will also play a big role in this regard. Everyone knows what goes up in value will eventually come down, though.

    Saxo Bank Warns About a Major Bitcoin Price Crash

    If and when that will happen for the Bitcoin price, remains unknown. No one can deny there is no real competition right now. Other altcoins are flourishing, but Bitcoin is still the gateway cryptocurrency for most users. It is also the easiest to obtain through traditional payment methods these days. When that situation changes, however, we may see some remarkable fireworks in the years to come. Saxo Bank firmly believes the total market cap will easily surpass $1tn in quick succession.

    At the same time, the position of Bitcoin will face some threats from outside the cryptocurrency world. According to Saxo Bank, Russia and China may be the only ones capable of doing so. A predicted intervention by both countries will create some shockwaves, but that has failed so far. China has halted all CNY-based Bitcoin trading, and the value only kept going up. They may very well look to create a Bitcoin competitor at some point and enlist the help of Russia to do so.

    If these forces collaborate, things will get very interesting. Bitcoin requires expensive hardware and a lot of electricity to mine. Cheaper alternatives will eventually gain traction, even if they are introduced by governments. Should such a competitor emerge, Saxo Bank feels the Bitcoin price will drop to $1,000 or lower. Whether or not we will see such a shift, remains highly unlikely. At the same time, nothing has been set in stone and everything is possible. An interesting future lies ahead for the cryptocurrency industry.

    Header image courtesy of Shutterstock

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