We’re barely past the halfway mark, and already Bitcoin is having a big year. The value of the cryptocurrency soared past $1,000 in January and then again in February. By March, its value surpassed that of gold, and on May 10, it hit what was then a record-high value of more than $1,700 per coin. In June, Bitcoin set a new record, closing above $3,000 before finishing the month at close to $2,500.
In all, Bitcoin’s first-half gain was approximately 168 percent this year, which has led various commentators, including Mark Cuban and Charles Schwab chief global investment strategist Jeffrey Kleintop, to suggest that the cryptocurrency is in a bubble.
The latest expert to weigh in on the future of Bitcoin is Goldman Sachs head of technical strategy Sheba Jafari, who sent a note to clients on Sunday, July 2, advising that while the value of Bitcoin may drop, it is ultimately likely to go even higher.
According to Jafari’s note, which was published by Zero Hedge, Bitcoin is still in the midst of a “corrective 4th wave” during which the value may fall as low as $1,857 — a drop of around 25 percent. According to Jafari, Bitcoin investors shouldn’t worry about this drop very much, though, because the currency could hit a record value during its fifth wave, perhaps as high as $3,915.
Whether the value of Bitcoin does soar toward the $4,000 mark or not, 2017 will still go down as a historic year for digital currency.
Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.