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Can Bitcoin Push Past $10,000 By End Of 2017 And What Effect Will It Have On Altcoins?

Can Bitcoin Push Past $10,000 By End Of 2017 And What Effect Will It Have On Altcoins?

*All figures taken from

2017 might be the Year of the Rooster according to Chinese zodiac but it will most likely go down in the history books as the ‘Year of the Cryptocurrency’.

The combined market cap of all cryptocurrencies increased by an eye-watering 1,432% this year.

That’s $234.4 billion over the span of 326 days (as at the time of writing), or $719 million per day.

Although a lot of this growth comes as a direct result of waking up the potential in Blockchain technology that lied dormant for many years, a big part of it is due to the bullish run we’ve seen from the original cryptocurrency.

Bitcoin itself increased by 890% over the same time period with the price pushing past $8,000 in the last week.

With this latest sprint into the unknown, there’s one Bitcoin price prediction that got everyone talking.

Hedge fund manager, Mike Novogratz, said in an interview with Bloomberg that the digital currency will end 2017 at $10,000.

Novogratz, who is starting a $500 million cryptocurrency investment fund, believes the astonishing growth will continue into 5 digits by the end of the year for a number of reasons:

  • Bitcoin is like gold an “gold has value solely because people say it has value”
  • It’s built on a truly revolutionary technology (i.e. Blockchain)
  • There’s a limited supply which brings in the scarcity and novelty factor
  • The revolution came as a result of a break down in trust from the 2008 crisis.

Other experts are even more optimistic.

Thomas Lee from Fundstrat believes Bitcoin will climb to $11,500 in 2018 while Ronnie Moas from Standpoint research predicts it will hit $14,000. Douglas Kass from Seabreeze Partners, went almost double that at $27,000.

You might even go so far as to agree with these predictions if you look at what Bitcoin had to go through during the year to reach this point.

  • Disagreements among developers caused two hard forks in the network, resulting in the birth of Bitcoin Cash and Bitcoin Gold.
  • Bitcoin has been banned in a number of countries, including China, one of its biggest trading markets.
  • The network had to deal with a Bitcoin protocol upgrade, i.e. SegWit.
  • High-profile critics came out publicly against Bitcoin:
  • Neil Dwane of Allianz Global Investors called Bitcoin a "scam for criminals around the world”.
  • JPMorgan Chase & Co. chief Jamie Dimon said only “stupid” people buy Bitcoin.
  • Larry Fink of BlackRock Inc called it an index to gauge the demand for laundering money around the world.
  • Jordan Belfort, a.k.a The Wolf of Wall Street, called Bitcoin a “fraud”.
  • The ongoing cries of bubble about to burst.

The digital currency’s resilience has, therefore, been thoroughly tested over the last few months and it still made it out stronger the other side.

To reach $10,000 by the end of the year, Bitcoin only has to increase by a further 22% (or $47 per day). If you think about what the coin has already achieved in terms of gains during the year, Mike Novogratz’s prediction of $10,000 is entirely feasible, maybe even conservative.

What effect does Bitcoin’s price increase have on altcoins?

When we think of the price in relation to Bitcoin, the value of altcoins will go down when the price of Bitcoin increases. This is because, when you want to invest in any of the altcoins, you can’t do it directly with fiat.

Most of the time you have to purchase Bitcoin (or Ether) first, and then trade it for the altcoin. So if Bitcoin is high, the altcoin will seem lower in relation to it, and vice versa.

However, the true value of a coin is linked to USD. In this case, you can look at it from two angles.

First, you can see Bitcoin as sort of a poster boy for cryptocurrencies. Wit price increases like the one we are experiencing now, it gets a lot of attention. As people learn more about Bitcoin, they will automatically become more aware of the wider cryptocurrency industry.

This is good for altcoins because the likelihood of new investors buying in at USD 8,000 per Bitcoin is very low. Instead, they will more than likely look at alternative tokens on the market. This will drive up investment and, consequently, the price of these altcoins.

The other scenario is that people start panic-selling in order to cash out at a higher Bitcoin ratio. If investors start dumping an altcoin, it doesn’t just have a negative impact on the price but also to the integrity of the specific Blockchain on which the altcoin runs.

These two possible outcomes are highly subjective and open to opinion. However, we can look at some numbers to get a more objective view.

Let’s look at 10 of the strongest altcoins to see what effect the latest Bitcoin price increase has had on them, if any.

We’ll use Bitcoin as a base, covering a week until today (23 November 2017), as this is when most of the hype surrounding Bitcoin’s latest price hike started surfacing:

  1. Bitcoin Increased 11%                
  2. Ethereum Increased 25%                
  3. Bitcoin Cash Increased 31%                
  4. Ripple Increased 14%                
  5. Dash Increased 34%                
  6. Litecoin Increased 19%                
  7. Monero Increased 36%                
  8. NEO Increased 18%                
  9. IOTA Increased 3%                  
  10. NEM Increased 5%      
  11. Ethereum Classic Increased 6%      

All of the top altcoins experienced a price increase (some more than others) over the same time period.

The numbers would, therefore, suggest that an increase in the price of Bitcoin is a win for the industry as a whole. And numbers hardly ever tell a lie.

Whatever your stance is on the price of Bitcoin, as it continues to push the boundaries towards $10,000 and beyond, we can reasonably expect to see growth in the interest, investment and price of altcoins.

*Disclaimer: The information contained in this post is not intended as investment and/or financial advice and should not be construed as such. It should not be relied upon to make any investment and/or financial decisions.