CryptoWatch: Trefis Research Cuts Year-end Bitcoin Price Target To $12,500 From $15,000

It’s déjà vu for cryptocurrencies with major coins mostly unchanged to begin Wednesday trading. Despite a mini-rally Tuesday, bitcoin and other major currencies remain within their short-term ranges.

The lack of activity and inability to recover losses early in 2018 prompted research firm Trefis to lower its year-end price target for the No.1 digital currency. “Adjusting our forecast for transaction volumes in our interactive Bitcoin Price Estimator now leads to a year-end price target of around $12,500—down from our earlier estimate of $15,000,” wrote Trefis in a June 5 research note.

“The global cryptocurrency industry has seen a flurry of new developments since December. Many of these developments had a negative impact on the growth prospects of cryptocurrencies, like restrictions by banks on the use of credit cards to buy cryptocurrencies, and calls by financial regulators across the world for caution while investing in digital currencies.”

The Trefis Price Estimator tracks the current price trend with two inputs; daily active users and daily transaction volume and according to its website has an accuracy rate of over 94%.

A single bitcoin BTCUSD, +0.23%  was last valued at $7,622.43, unchanged since Tuesday 5 p.m. Eastern Time on the Kraken cryptocurrency exchange.

Read: If bitcoin is a bubble, the ‘panic’ stage is near: economist

Altcoins and futures off to a quiet start

Major altcoins, or coins other than bitcoin, were mixed relative to Tuesday’s 5 p.m. Eastern Time closing levels. Ether ETHUSD, +0.13% is down 0.3% to $606.00, Bitcoin Cash BCHUSD, -0.94% has lost 0.4% at $1,146.70, Litecoin LTCUSD, +0.65% has added 0.8% at $122.17 and Ripple’s XRP coin XRPUSD, +0.08% is down 0.8% at 67 cents.

Bitcoin futures are off to a slow start. The Cboe June contract XBTM8, +0.52% is up 0.1% at $7,635, while the CME June contract BTCM8, +0.59% is unchanged at $7,620.

Read: Bitcoin is ‘the last thing I’d want to own’ if the grid goes down, says famed short seller Jim Chanos

RECENT NEWS

What A Rising VIX Means For Pension Funds

Wall Street’s latest selloff has moved beyond a technology-sector wobble and become a broad market event. The Nasdaq C... Read more

Behaviour Cannot Fix A Portfolio Construction Flaw

A Retiree Shouldn't Be Asked to Behave Their Way Out of a Portfolio Construction Problem Why behavioural coaching shoul... Read more

Behavioural & Retirement Portfolio Resilience

Behavioural Survivability and Retirement Portfolio Resilience Why the lived experience of market recovery matters as mu... Read more

Australia's Rate Rise Bites: Highest In 15 Years

The Reserve Bank of Australia has lifted interest rates to their highest level since 2011, and its governor admits the w... Read more

October Retirement Portfolio Resilience Assessment

Markets stabl Read more

Gyrostat September Retirement Portfolio Resilience Assessment

September Retirement Portfolio Resilience Assessment Markets have fallen. The price of risk has risen. ... Read more