Has Bitcoin peaked now that it’s hit $US100,000 or can I still make a fortune?

ED’s note: This column is from The Daily Mail. Currencies used are in US dollars and English pounds.

Now Bitcoin’s value has broken through the $100,000 mark — what’s next for digital money?

Last week, we explained how the cryptocurrency market works and warned that if you are brave enough to dip your toe in the water you need to be fully aware of the risks involved and only invest money you can afford to lose.

Money Mail has since received many questions about Bitcoin, with readers asking if they have missed the boat after the surge in price and whether there is an opportunity to make money.

We asked five experts about their predictions for Bitcoin...

A SURGE THEN FALL

Petr Chromy, a cryptocurrency trader who has been in the business for more than a decade, says: “In the next four months I think it could continue to rise to as much as $200,000 [£157,000].

“But if it hits $160,000 [£125,000], I will sell my entire stock because I fear such a surge can only be followed by a huge fall.

“I think it could tumble to as low as $30,000 [£23,000] later in the year — which is when I would buy again because I would have already cashed in and have the money in reserve. I currently hold about £30,000 in cryptocurrency.”

Chromy adds: “Knowing when to sell is important as you need the reserve to re-invest again when the time is right.

“Always be wary of buying out of greed — or selling in a panic. Treat it as money you can afford to lose.

“My strategy is to set limits and not go too crazy. Making money in this game is viewed as a bonus.”

BEST YEARS GONE

Glen Goodman, author of The Crypto Trader, believes the Bitcoin’s best years for huge surges may be behind us.

He says: “It could be peaking at about $120,000 (£94,000) towards the end of January. This might well be a high point — and this may be time to sell.”

It could then fall by as much as two-thirds in 2025.

He adds: “I believe the day after Donald Trump won the US election could have been the last opportunity to benefit from a leap in value. But Trump is an unpredictable character so, if he falls out with Elon Musk and cryptocurrencies tumble in price, then a potential buying opportunity may present itself if it starts climbing again.”

TUMBLE AFTER 2025

Danny Scott, chief executive of crypto-trading platform Coin-Corner, believes the bull market, which means a period of sustained growth, could continue for the next six to 12 months — with prices rising to $250,000 [£196,000].

After 2025, values could tumble for the next couple of years by as much as 80 per cent.

This would turn $100,000 into $20,000 (£15,000).

He believes Bitcoin will then rise again, adding: “I remain bullish going into 2025 because Trump seems keen on including cryptocurrency as part the US government’s economic strategy.

“I prefer putting in small amounts over time rather than trying to outfox the market by predicting the next big rise or fall.

“A typical trader might put in money once a month — with an average purchase amount being perhaps £350. A modest trader might put in an occasional £100.”

Scott adds: “I have learned there’s no point losing sleep about whether the price goes up or down in the short term. Much better to make regular payments as in the longer term Bitcoin has continued to steadily go up in value over time.”

FRESH MOMENTUM

Chris Beauchamp, an analyst who studies cryptocurrencies at IG Markets, says: “Bitcoin smashing its way through $100,000 is likely to be a catalyst for a fresh wave of momentum buying — taking it to the next stop of $105,000 before $120,000 next year.”

Beauchamp believes there is no time like the present to get involved.

He says: “Anyone interested should only drip feed small amounts of money initially to get a better understanding of what is going on in the crypto market.

“For example, if you are thinking of putting in £500 then consider starting with £100 now to scratch that itch — then wait until the New Year to see how it has fared.”

Beauchamp believes values could remain high for the next few months because a growing number of traders are keen to keep their hands on the coins in the hope of future rises — meaning supply is currently constrained.

He says three-quarters of the just under 20 million Bitcoins in existence are held by long-term investors, adding: “This group is known as ‘hodlers’ — which stands for ‘hold on for dear life’. They got stuck when markets were falling but for now their patience seems to have been paying off.”

BITCOIN REFRESHER

Simon Peters, an analyst at crypto currency trading platform eToro, says: “Last month Bitcoin fell just shy of the $100,000 mark — and then went down 10 per cent as the US celebrated Thanksgiving.

“Although Bitcoin has since broken through the $100,000 mark, the pattern of price movement displays similarities to 2020, which was the last time there was a halving of the Bitcoin.”

Halving refers to how the reward for successfully mining Bitcoin drops every four years.

This year in April it halved from 6.25 Bitcoins to 3.125. The number of Bitcoins will never exceed 21 million because this is how many have been programmed to exist — and the limited supply helps keep demand and prices high.

So far almost 20 million have been mined. Bitcoins are “mined” using super-powerful computers to go through mathematical permutations in search of a hidden code.

Peters adds: “Almost four years ago, Bitcoin rallied to an all-time high when it peaked at $69,000 (£54,000). Of course, we cannot predict what is going to happen in the current cycle but it is interesting to see how the patterns frequently get repeated.”

Bitcoin prices tend to peak 12 to 18 months after halving.

This puts a timeline of the end of 2025 or early 2026 for when the peaks of the bull market occurs.

For most people, the best way to obtain Bitcoin is through an online trader such as eToro and CoinCorner.

You can buy using a debit or credit card.

You do not have to buy a full Bitcoin but can purchase in fractions that are as small as a ‘Satoshi’ — one hundred millionth of a Bitcoin.

In return for the purchase you are given a unique code that is proof you own Bitcoin. You must not lose this. The currency is stored in a “virtual wallet” where it can be viewed and traded.

There is no actual physical money.