Saxo Bank says bitcoin will reach $60,000 in 2018 and then will crash

Saxo Bank is one of the latest financial institutions to make a prediction regarding the future of bitcoin. Saxo Bank recently said that bitcoin will reach the value of $60,000 in 2018, and then will crash to around $1,000.

This means that the bank believes that bitcoin's value will crash more than 98%. The $1,000 value is considered to be the cryptocurrency's fundamental production cost. The statement was made by Saxo Bank in its publication, Outrageous Predictions. This is an annual publication of the Danish investment bank. Two analysts for the bank claimed that:

“The rise of Bitcoin and other cryptocurrencies has been one of the most spectacular phenomena of financial markets in recent years. Bitcoin will continue to rise – and rise high – during most of 2018 but Russia and China will together engineer a crash.”

China and Russia might contribute to the decrease of bitcoin's value

The bitcoin future prediction said that the cryptocurrency market cap will reach $1 trillion. However, according to the bank, this will not last for long and the impressive growth will be equaled by an impressive and fast decrease. Saxo Bank also predicted that countries such as China and Russia will focus their efforts against bitcoin, which will move completely the attention of investors from the cryptocurrency.

The two countries are expected to issue state-backed cryptocurrencies, but they are also expected to intervene in making it more difficult for bitcoin to grow, including banning mining, and even regulating the cryptocurrency in an undesirable manner. Saxo Bank seems to believe that national cryptocurrencies can function better as payment systems and they will end the growth of bitcoin, which will drop to $1,000.

The intervention of the state, the stability of national cryptocurrencies and their smoother functioning will also lead to a decreased interest in the market, Saxo claimed, adding that this way the interest in Bitcoin will also end. Saxo Bank said:

“After its spectacular peak in 2018, Bitcoin crashes and limps into 2019 close to its fundamental ‘production cost’ of $1,000.”