Though the cryptocurrency market is witnessing regulatory pressures of tightening of regulations, it does not prevent anyone from betting a specific digital coin is hitting a targeted price. This is applicable in respect of Ethereum too. By predicting the price growth of the virtual currencies, analysts should be taking into consideration the potential impact of the regulatory efforts. Still, there are some elements of doubts as to how analysts engage themselves in the valuation of these digital currencies.
The price target on Ethereum
Interestingly, deVere Group, which is an independent financial consulting firm, believes that Ethereum price could easily hit $2,500 before the current year ends, cointelegraph reported. The company is engaged in providing investment, as well as, wealth management services. Currently, the price of the digital coin is only around $670 with a market value of approximately $66.369 billion. Ethereum is the second biggest cryptocurrency in terms of market value. The target price suggested that the virtual currency could deliver a return of about 273 percent.
Though the target could be seen somewhat as a highly optimistic one, the fact remains that most of the digital currencies have seen a growth of over 1000 percent last year. Ethereum too has witnessed over 5000 percent growth in 2017. Therefore, the current expectation of 273 percent could appear to be achievable to optimists. However, this depends on a number of other factors. That is primarily because governments across the globe are tightening their regulations on the cryptocurrency market.
deVere Group cited at least three reasons for Ethereum to witness a significant increase in price. The second biggest digital currency could record fourfold jump price due to increasing adoption rate of the virtual currency apart from smart contracts usage. The financial consultancy firm’s CEO and founder, Nigel Green, told media that it is only a question of time before the regulators introduce digital currency market regulation. Some of the countries are still showing reluctance whereas others are ready to encourage the sector.
Green said that “The price of Ethereum is predicted to increase significantly this year and could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020 […] This general upswing will be fueled by three mains drivers. First, more and more platforms are using Ethereum as a means of trading. Second, the increased use of smart contracts by Ethereum. And third, the decentralization of cloud computing.”
The financial consultancy firm’s CEO thinks that the tightening of regulations will only result in increased confidence in the cryptocurrency market. The regulatory efforts would also better serve the investor’s protection purposes. It is quite natural for the regulator to intervene after the digital currency market witnessed high volatility in the last year.
Green also gave his prediction for bitcoin after the record-breaking rally in December last year. At that point in time, he indicated that Bitcoin could witness see-sawing in upcoming weeks. This would be followed by sharp moves. Another bitcoin optimistic, Tom Lee, also predicted that bitcoin price could hit $25,000 before the current year ends. It was hovering around $9,150 on Friday.