This graph shows the exchange rate of Bitcoin against the dollar over the past several years. Since it is market forces alone that set the price for any cryptocurrency, one can easily note the obvious uptick in the demand for Bitcoin in 2013 and 2014. Despite the currency's high volatility and sensitivity to all kinds of news, the upward trend continues and, while the first five months of 2014 saw some price corrections, the later half of the year is expected to bring robust growth.
First and foremost, the trend is driven by the growing interest in Bitcoin from major financial players ready to invest hundreds of millions of dollars into this cryptocurrency. One notable fact is that the players making such investments are not the newfangled financiers of Silicon Valley but large, established investors with tens of billions of dollars under management, such as Fortress Investment Group.
During the past year, these companies generated such a demand for Bitcoin that investment managers resorted to buying bitcoins directly from the miners and bypassing the exchanges to avoid too steep a price hike too soon.
We are confident that in 2014 investors will take the currency to a new level of more than 1,000 USD for 1 BTC. According to our forecast, this level will be reached in the beginning of the third quarter of this year.
Should there be any remaining doubts that this asset could generate some healthy returns, take note of the cyclical nature of its price. As the graph clearly shows, the start of “pumping” occurs every seven months. As part of the current trend, the peak price is expected in December, after which the market will cool substantially. Therefore, remember to set the profit levels incrementally. Finally, if Bitcoin is considered for a mid-term investment, we recommend our exchange, where buying this cryptocurrency is only a few clicks away and no registration is required.