Monday, December 11, 2017

It's that time again for new year's forecasts and one major bank is predicting Bitcoin price falling back to $1000

Perhaps the biggest institution that compiles new year predictions would have to be the Coast to Coast radio program, which every year dedicates two complete days towards collecting hundreds of predictions from both listeners and recognized 'experts'.  But when it comes to finance and the economy there are only a few analysts that deem it prudent to dip their toes in the paranormal waters by forecasting trends which may or may not come to fruition in the financial and geo-political realms.

One of these institutions is that of Saxo Bank, which is often known for their wild speculations on future events, but came in 100% accurate in predicting the UK's Brexit two years in advance.

So with this in mind, what does Saxo Bank have in store for 2018?  Perhaps most interestingly or outrageous is their forecast for the Bitcoin price to drop back down to its January 2017 levels of $1000.

1) Bitcoin collapses to $1,000 
I thought this one was interesting, first and foremost, because Saxo hit the proverbial nail on the head last year in its “Outrageous Predictions for 2017,” in which they said
“we could see Bitcoin easily triple over the next year going from the current $700 level to +$2,100.” 
Well, they were almost right. Bitcoin not only reached $2,100, but ripped past four figures entirely and is now hovering around $14,000 as I write this. 
Saxo now predicts that, in 2018, Bitcoin will peak at $60,000 with a market capitalization of more than $1 trillion, after which a number of governments will engage in a coordinated attack to prohibit all cryptocurrencies. 
Simultaneously, governments launch their own blockchains and cryptocurrencies, and Bitcoin crashes to $1,000. 
2) The Federal Reserve loses control 
Saxo predicts that the US economy begins to suffer in 2018, and the bond market begins to melt down. This results in a massive spike in interest rates, which the US government cannot afford. 
Fearing for its own solvency, the Treasury Department assumes emergency powers to cap interest rates at 2.5% 
Meanwhile, “[t]he hapless Fed will be scapegoated by politicians for the economy’s weak performance, a bond market in vicious turmoil, and the aggravation of already worsening inequality brought on by years of post-global financial crisis quantitative easing.” 
3) China launches its own “petro-renminbi” 
You may have noticed that oil prices, almost everywhere in the world, are quoted in US dollars. 
Whether you’re talking about a barrel of oil drilled off the coast of Brazil, Saudi Arabia, Canada, or Norway, the price is nearly invariably quoted in US dollars. 
This means that anyone who buys and sells oil– from foreign governments to multinational corporations– transacts in US dollars. - Saxo Bank


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