WASHINGTON: Phillip Nunn, CEO of The Blackmore Group and Wealth Chain Group, piqued the interest of the cryptocurrency and investing communities in January of this year when he made a prediction that the price of Bitcoin, in the year of 2018, would reach a bottom of $6,000 and a high of $60,000. At the time of the prediction, the price of Bitcoin had pulled back a large percentage of its run-up to an all-time high in mid-December of almost $20,000 and was sitting at just over $10,000.
The first half of Nunn’s prediction came true in the first week of February when the price of Bitcoin briefly fell below $6000. Now, many are becoming skeptical that Bitcoin will be able to return to its $20,000 all-time high in 2018, let alone come anywhere close to $60,000.
Nunn remains confident, however, citing his unwavering beliefin the underlying blockchain technology as the vehicle that will take Bitcoin and others to new highs in the coming years. He told Business Could:
The reality is we’re moving from an internet of information to an internet of value. It’s going to disrupt everything; money, record-keeping, legal.
Nunn — as well as most other cryptocurrency investors and analysts — will mostly agree that the biggest factor in these high percentage predictions in either direction can be accredited to the market’s high volatility. Nunn explained:
The prediction was based on, first of all, market volatility which we’re experiencing at the moment; I think that’s really apparent. I absolutely stand by my prediction.
The cryptocurrency market is still relatively young and quite small compared to traditional markets, and cryptocurrency’s small market cap makes it easier to manipulate. However, constant waves of news concerning regulation, technology, and security make the cryptocurrency market truly unique. Nunn continues:
All the money that exists in crypto at the moment is from the public, so it’s all about market sentiment. A flood of bad news can wobble the market, stuff like regulation. The industry is so small that there’s market manipulation.
As the cryptocurrency market matures, however, expect an influx of institutional investment and new infrastructure to slowly mitigate market manipulation and (potentially) push prices higher.