Price Prediction of Bitcoin Corrects price prediction indicates a decrease in the value of Bitcoin. Guggenheim Partners Investment Manager Scott Minerd said the collapse of cryptocurrencies was usual. It is because this currency has high volatility and is undergoing a significant correction.

He estimates the price of bitcoin could fall by up to 50%. “I think the bitcoin price could pull back to $20,000 to $30,000, which would be a 50% drop,” Minerd said.

The drop in the price of bitcoin, according to him, reminded the market of what happened in 2017. At that time, the cost of bitcoin had soared. However, its price fell sharply throughout 2018 and lost almost 90% of its value.

Investors Stay Optimistic On Price Prediction

Even though bitcoin and other cryptocurrencies have plummeted, the community remains optimistic that their prices could soar again or rebound. The current technological and institutional development of cryptocurrencies is much faster than in 2017.

“Although this percentage (decrease) is like a few years ago. But the technological leap that has occurred, both in terms of market structure and advances in protocols, is much different,” said Bitfinex Chief Technology Officer Paolo Arduino, quoted by Forbes.

On the other hand, the UK Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies due to the drastic price fluctuations.

“The price volatility inherent in cryptocurrencies, combined with the difficulties encountered in assessing whether they are sufficiently qualified in this area, places clients at significant risk of loss,” the FCA said.

Investment Guide in Cryptocurrency and Price Prediction

In Indonesia, business actors in this sector remind four things to consider before transacting in crypto assets. First, investors must understand the risks. “This crypto asset is highly volatile,” said Kurnia Bijaksana, Founder of Evolution trading.

Second, investors understand the types and characteristics of crypto assets before transacting. There are at least 8,472 types of crypto assets ranging from Bitcoin, Etherium, Tether, XRP to Dogecoin. In Indonesia, only 229 types of crypto assets are allowed to be traded in the country.

Bitcoin is tradable, while Dogecoin is not. The transacting is regulated in the Commodity Futures Trading Supervisory Agency (Bappebti) Regulation Number 7 of 2020 concerning the List of Crypto Assets that investors can trade in the Physical Crypto Asset Market.

Third, investors must understand the legality of crypto asset traders. Currently, there are 13 traders registered with Bappebti. This agency regulates requirements for crypto asset traders to avoid parties that can harm the market.

The requirements in question are health in terms of health, governance aspects, and technical qualifications such as human resources (HR), information systems, and security systems.

Finally, understand and anticipate various potential cybercrimes such as fraud, money laundering, and terrorism financing. In addition to paying attention to transaction security, you must also pay attention.