As Trefis, stock analytic firm, noted in its twitter, they have lowered the estimation of their bitcoin price: “Lowering Our Year-End Bitcoin Price Target To $12,500 Due To Weaker Transaction Volume Outlook”

Trefis’ BTC prediction analytics is based on fundamentals of supply and demand, where demand is the amount of users and the number of transactions, and supply is the number of available BTC. Trefis pointed out huge recent losses in total volume of transactions across crypto exchanges, and refers a surplus in supply and subsequent drop in price to Mt. Gox dumping BTC onto exchanges this spring.

Trefis noted that while the major cryptocurrency has seen some gains over the last days of May, it still declined sharply over the month, having dropped to monthly lows after almost touching the $10,000 mark.

Recently, the crypto market’s low capitalization was noted in a study by the Dutch government. The study found that low trading volumes in addition to minimal institutional exposure made crypto a low risk to the country’s financial stability. Earlier in May, blockchain venture capitalist Spencer Bogart claimed that Bitcoin will trade “at least” above $10,000 by the year’s end, also arguing that most altcoins are possibly “overvalued” and will drop significantly in price.

Source:

https://cointelegraph.com/news/stock-analytics-firm-lowers-btc-year-end-price-prediction-by-nearly-17