Bitcoin Price Prediction for 2017

Last updated on January 2nd, 2017 at 10:38 pm

The following article represents the opinion of its author and does not constitute as investment advice. Bitcoin is a very volatile currency and you’re putting your capital at risk when investing in it (just like any other investment).

2017 will be upon us soon enough, so it should come as no surprise that many bitcoin experts are looking ahead to the upcoming year. Given that bitcoin has built in features to encourage its price to rise over time, and given the growing acceptance of both non-government currencies and digital currencies, there are plenty of reasons to be optimistic.

Understanding the anti-inflationary features of bitcoin is essential to understanding its price. Bitcoin’s price back in May weighed in at “only” about $450. In the run up to the new supply for mined blocks being cut in half bitcoin’s price began to rise, breaking the $750 mark in mid June. Bitcoin’s price has declined a bit since, but is still about $600, far higher than it was earlier this year.

The Bitcoin reward for mining won’t be halved until early July in 2020. Regardless, the bitcoin’s price will likely continue to trend up through 2017. This doesn’t mean that bitcoin won’t suffer setbacks, but the overall trend line will likely point up through 2017.

Bitcoin Use Likely To Increase Dramatically in 2017

Juniper Research, a respected research firm, predicts that bitcoin transactions will triple in 2017, reaching $92 billion dollars. Juniper notes several factors that should encourage the increased adoption of bitcoin in 2016 and through 2017, including the fragility of the Chinese economy, the Brexit vote and on-going issues in Europe, including high unemployment and bad public finances, and numerous other issues.

As national governments continue to struggle and the global economy is exposed to high risks, it’s likely that an increasing number of people will look to bitcoin and other alternative currencies/investments. Bitcoin has taken on the mantle of a “safe haven” investment, due to the fact that it is free from government interference, and that supply is limited. Governments can increase money supply at pretty much any whim, thereby decreasing the individual value currency units. Bitcoin’s supply, on the other hand, is already set and cannot be changed.

If the global market grows more turbulent in the months ahead (which is quite likely), people may start ditching their traditional currencies in favor of bitcoin. This will lead to increased use of bitcoin, and as more people use the currency, demand for it will rise, and prices along with it.

Bitcoin Price Predictions for 2017

Daniel Masters, a co-founder at the multi-million dollar bitcoin hedge fund, predicts that bitcoin will hit $4,400 by the end of 2017. Masters believes that bitcoin adoption will continue to increase, and more companies will accept it as payment. This increased adoption will be propelled investments in blockchain technology.

Alan Donohoe, the founder of the Bitcoin Association of Ireland,  made a more down to earth prediction earlier this year, suggesting that bitcoin will rise to about the 800 pound mark. This would put bitcoin up above the $1,000 USD mark, a price point that bitcoin last approached (and in some cases broke) back in 2013.

SpectroCoin CEO Vytautas Karalevicius argues that bitcoin transactions will increase 10 times. If this proves to be accurate, Karalevicius believes that bitcoin will rise to about $1800 to $1900. This is based on the correlation between bitcoin turnover and price that we’ve generally seen so far.

Banker Predicts $600 for 2016, Doubling in 2017

At the beginning of the year an analyst with Wedbush Securities, Gil Luria, predicted a price of about $600 in 2016. As of right now, Luria’s prediction is pretty much spot on as bitcoin has been trending at about $600 dollars over the past several weeks. Luria believes that bitcoin will continue to grow as a transaction medium, another prediction that largely appears to be correct.

For 2017 Luria predicts that bitcoin’s price will once again double. In fact, Luria believes that bitcoin’s price will essentially double all the way up until 2025, which would mark an increase of 4,500%! If this prediction turns out to be correct, investors could generate massive returns.

Three Factors That Could Spur Bitcoin Growth

Vinny Lingham, the CEO of Civic, predicts that bitcoin could hit $3,000 in 2017. Lingham’s predictions are especially notable because he’s made a name for himself by being willing to state contrarian views, and has accurately predicted drops in bitcoin’s price. Now, however, Lingham believes that the remainder of 2016 and 2017 will be very good years for bitcoin.

Lingham’s prediction comes down to three factors. First, venture capital investments in bitcoin and blockchain technology have now topped a billion dollars, and as more companies invest, use and acceptance of bitcoin will likely increase. Second, a “short squeeze” may be forming as people who have shorted bitcoin may be forced to buy bitcoins to repay their short bets. Third, bitcoin will continue to enjoy natural inflation due to its limited supply.

Lingham also suggests that an arms race could breakout as governments decide to start to buy up bitcoin. So far, most governments have shied away from bitcoin, but as adoption increases, they may get into the game. Go

An Important Caveat: Experts May Make Self Serving Predictions

Many of the predictions made above are coming from people who have self-serving interests, and would benefit greatly if bitcoin suddenly increased dramatically. While many of the experts may be making honest predictions, we can’t rule out that some may simply be trying to blow hot air into the market to heat things up.

In some more extreme cases, “experts” have predicted that bitcoin could hit $35,000 or more in the near future. This, however, seems unlikely. By making such huge predictions, however, people can stir up the pot and maybe bolster markets, all while ensuring that their name gets passed around.

Breaking the $1,000 Dollar Mark Is Very Possible

Most experts are predicting that bitcoin will break $1,000 in 2017. This would mean that bitcoin’s price may actually double from where it is trading at right now. Such returns would present an extraordinary amount of growth. Such returns are also very plausible.

There are several key factors at play. First, the global economy is on tenuous grounds, and bitcoin is a safe haven currency/asset. If the global economy does hit a rough patch, which is very plausible, then bitcoin and other safe haven assets and currencies will enjoy a boost.

Second, many governments, including Japan and the Eurozone, have been engaging in quantitative easing. This means that they are increasing their money supply by creating money and buying up new assets. This increases inflation and encourages people to invest in things like bitcoin.

Third, an increasing number of companies, and especially retailers, are taking interest in bitcoin. Others are also interesting in blockchain technology. As interest grows, adoption will spread, and as more people use bitcoin, prices should increase.

So while $5,000 and other numbers are perhaps a bit overly optimistic, $1,000 seems very reasonable. And if a major event does unfold, such as a global recession, or a major company like Amazon announcing that it will accept bitcoin, who knows those $5,000 dollar predictions might not look so overzealous after all.

If you have any thoughts about Bitcoin’s price for 2017 I would love to hear them in the comment section below.

Brian Booker

An international financial analyst and writer. He has consulted for the Malaysian government, various MNC's, and other organisations. He focuses on currencies, commodities, and emerging South East Asian markets.

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46 Comments on "Bitcoin Price Prediction for 2017"

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mahendra sharma
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mahendra sharma

Hi, I am from India, here in India Bitcoin price are very high comparatively other countries. Today $1=64 INR But the current bitcoin price in India is 296000 INR which is equal to $4625 and Current Bitcoin price in the international market is $3584 why this Gap in India?
Can you predict bitcoin price for 2018 for India.
I found the future prediction for BTC price at jaisi.org/bitcoin-price-prediction/
But I am still confused that should I trust these price for India.
Waiting for your valuable reply… please help.

Zsofia Elek
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Zsofia Elek

Hi Mahendra, the price of Bitcoin may be different between exchanges, because markets are not directly linked. There are some regions where residents are not able to buy Bitcoins from international exchanges, which drives up the prices on local exchanges. You can read more about Bitcoin arbitrage in this article: https://99bitcoins.com/bitcoin-arbitrage/

alex
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alex

hello i read market daily , or i like to buy btc ,,, what you peoples suggest me can i buy now ,, or wait the end of this month ,,, because market going day by day up ,,, one friend told me after 21 august market go down then invest in this ,,, what you peoples think

nokubongwa khumalo
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nokubongwa khumalo

Hi

Which date of the month us the best to buy bitcoins?

Zsofia Elek
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Zsofia Elek

Hi Nokubongwa, the price of Bitcoins depends on the supply and demand on the market, it changes every second. You can read more about the value of Bitcoin here: https://99bitcoins.com/know-why-bitcoin-has-value/

Aditya Singh
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Aditya Singh

MY prediction says , it woundn’t cross 6000 at any cost. Within sort interval it crosses the 4 times , doesnot means same growth will and you get 10 times.

No never. this is not the right time to invest, better just hold your fund.

shone
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shone

Hey guys.. i have 20 btc bought at $2700. its failing down now its $2300 . what do you guys suggest should i sell or i should wait for gain?

Vikas
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Vikas

Don’t sold it October yet

Anonymous
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Anonymous

Definitely you should hold it next 2 to 3 years

sophie seth
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sophie seth

u should donate

Pritana
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Pritana

Hold it now

Ayman
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Ayman

definetly wait…btc will rise in the near future..and i suggest that you would treat your btc as a long run investment

Anonymous
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Anonymous

Wait for one month.it will go for $1000 and then bounce back and go above $6000 @October.

Ofir Beigel
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Ofir Beigel

Hi Shone,
we don’t give any investment advice on the blog. I suggest reading this article to understand out investment guidelines:
https://99bitcoins.com/should-i-invest-in-bitcoin-heres-what-you-need-to-know/

RISSALA POLO
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RISSALA POLO

year-end looks like it shall be in the range of 4000- 5000 usd . as India and its people wake upto the idea of bitcoin. that’s 1.25 billion young people below the age of 30 yrs is 70%.

Dave
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Dave

$6,000 by year’s end. I found very interesting also predictions from cryptomon.io. They used deep learning algorithms, with very promising accuracy.

LUIS ERNESTO
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LUIS ERNESTO

porque bitcoin no seguido consignando y ahora esta boqueado no permite retirar del monedero,como haga para estar seguro que no pierdo mi inversion,si esto se activa nuevamente a partir de que fecha

CoinCrusher
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CoinCrusher
I’m having a significant problem with market entry. I’ve designated a six figure sum for this speculative “investment” but transferring the funds seems almost impossible. I’ve tried Coinbase but they limit transfers to $5,000 per WEEK!!!!! The question: which exchange allows you the easiest way to transfer a six figure sum so you can then purchase whatever crypcurrency or appcoin you’ve decided? #2 question: Is there an exchange that allows you to trade such currencies but also allows you to hold USD’s at the same time? i.e., I’ve invested in BTC and it spikes up to $2900. I feel that… Read more »
Ofir Beigel
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Ofir Beigel

Hey,
I think most major exchanges will have limit on new accounts. However you can try Bitstamp. They will let you hold a Bitcoin and a USD balance. Although I’m not sure if they support any altcoins.

okan akgunes
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okan akgunes

If any big trade online shopping companiesstart to accept btc payments like Amazon or Alibaba, then the BTC price will be hit over 5000 usd very easily. This proves the market , BTC is trustable.

Simba
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Simba

is it too late to invest, i’ve been told ethereum is a good bet. should i put my money towards it?

if not what do you guys recommend and are there people out there who are advisors

thanks,

mark
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mark

5 month ago….to late ?

Zsofia Elek
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Zsofia Elek

Hi Simba, cryptocurrency investment topic can be very tricky as it depends on many personal factors, like your amount of time, money you want to spend, your risk attitude and your knowledge in what you are investing in. I guess you will need to draw your own conclusion. Here you can read more about the differences between Bitcoin and Ethereum: https://99bitcoins.com/bitcoin-vs-ethereum-cryptocurrency-comparison/

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