Research Investment Firm Fundstrat Believes Bitcoin Will Soar to $64,000 in 2019

The last couple of months have brought along great volatility on the digital currency market, thus leading to price instability among all major cryptocurrencies. However, things will reportedly be better as investment research firm Fundstrat believes bitcoin could reach $64,000 next year.

In a recent statement, Fundstrat mentioned that bitcoin’s mining activity is bound to increase, therefore leading to the price soaring. To put things better into perspective, new bitcoin is created through mining, and given as rewards to miners. To mine, a large amount of processing power is required, commonly known as hash power. The investment research firm things that hash power will grow by roughly 350% during 2019.

In a recent press statement, Sam Doctor, who is the head of data science research at the company, mentioned that: "We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range."

Such a value increase would present the second major price soar for bitcoin, the first being when it surged from $1,000 to over $19,000 in a couple of months given increasing investor interest. The prices were brought lower by increasing concern surrounding regulatory framework for digital currencies, initial coin offerings and blockchain technology.

According to Sam Doctor, the main bitcoin net sellers are actually miners, whereas all other transactions are simply carried out between investors. With this in mind, miners are more likely to hold crypto as prices fall, and sell as they increase. Additionally, it is believed that soon enough, next generation bitcoin mining rigs will be released to the public, thus leading to an increase in hash power, that can further accelerate in case the price rises.

The co-founder of Fundstrat, Tom Lee, represents the only Wall Street strategist to actively cover bitcoin. His first report on the cryptocurrency was made in July 2017, when he mentioned that it is likely for bitcoin to hit values ranging between $20,000 and $55,000 by the year of 2022.

This is all good news, given the fact that the last couple of months have been filled with negative statements surrounding cryptocurrencies, major regulatory efforts, crackdowns, and very little positive news for the digital currency community. Things may just be about to change, however.