Cryptocurrency Explosion
There seems to be no end in sight to the cryptocurrency explosion. Prices for the three major altcoins have risen to incredible new heights.
Some of the highlights about the ongoing cryptocurrency bubble that one can glean from Coinbase data include:
- Ethereum’s value increased by 335.6% between May 13 and June 13, 2017. On May 14, 2017 a unit of ether was trading at $89.61 less than a month later it was fetching $388.41 in the open market.
- Ethereum gained $299.96 in value between May 13 and June 13, 2017.
- Bitcoin is approaching $3,000 in value. A unit of the original cryptocurrency was trading at $2,726.99 on June 13, 2017.
- Bitcoin has more than doubled in value in the past 30 days. Its price grew by 51.03% between 13 May and 13 June, 2017.
- The cost of a unit of Bitcoin increased by $917.46 in the 30 days between May 14 and June 13, 2017.
- Litecoin is not sharing in the bubble. Its price increased by just 4.99% or $1.43 in that period. That’s a healthy return but nothing like the craziness for bitcoin and ether.
- Litecoin was still very affordable at $30.27 a unit on June 13, 2017.
Bitcoin will Clear $3,000 and Ethereum will hit $500
My take is that bitcoin prices will exceed $3,000 and units of ether will cost $500 before the bubble ends. Then they’ll probably crash and lose about a third of their value.
That means ether prices will drop by around $166.66 and Bitcoin prices will fall by around $1,000. After that prices will stabilize with bitcoin sitting at around $2,000 and ethereum staying at $300 for the foreseeable future.
The other big prediction that I will make here is that we will not see a major bubble in Litecoin until either bitcoin or ether collapses. Then a lot of the money that’s in the two major cryptocurrencies will flow into Litecoin.
One thing is certain if you’re thinking of buying cryptocurrency right now buy Litecoin. It is the only major altcoin that is not bubbling right now. Ether and Bitcoin are in a dangerous bubble that can burst at any minute.
