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How Bitcoin Could Reach $2,000 by January Next Year

How Bitcoin Could Reach $2,000 by January Next Year

A report issued by the Saxo Bank, and entitled ‘Outrageous Prediction for 2017’ says that several reasons will gradually push the bitcoin price forward, until it reaches the new high of $2,000.

At this moment in time, there are three plausible reasons, these being Donald Trump’s presidency, the Indian demonetization and the fall of the Chinese Yuan.

Bitcoin price increase

It is thought that once Trump officially becomes president, he will begin a fiscal spending binge, which will increase the $20 trillion national debt, while also tripling up the current US budget deficit, from around $600 billion, up to 1.2-1.7 trillion in the next couple of years. In the event that these predictions come true, then chances are that people will begin looking for alternative currencies, in which they can keep their money safe. The reports also adds 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 Blockchain’s decentralized 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 the same case with China. They have recently introduced more severe laws, meant to keep their national currency, the Yuan, within their borders. The inability to get their hands on other currencies will likely encourage Chinese investors to further invest their monetary assets into bitcoin, thus increasing the value of the digital currency.

Last but not least, India will also likely be responsible for a part of the growth. Not long ago, the Indian PM decided to pull all Rs500 and Rs1000 notes from circulation, to help prevent corruption and terrorism funding. In return, this has encouraged the weekly volume of bitcoin trading to double. This increased trading activity has also helped push the value of the digital currency to new highs.

In fact, bitcoin is now rated at $773, thus it has one of the biggest values in the last three years. This series of events have once again proven that bitcoin is deemed to surge at moments of financial and currency crises.

Based on everything that has been outlined so far, what do you think about the influence of the three factors, on bitcoin price? Let us know your thoughts in the comment section below.

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