A new report from Juniper Research discusses the emergence of cryptocurrencies with particular reference to bitcoin and outlines bitcoin market forecasts.

Calling the advent of digital currencies as one of the true phenomenon of eCommerce, the report 'Will Bitcoin Bite Back?', touts bitcoin as the “first mass cryptocurrency”. It noted the growth in bitcoin adoption evident from the rise in average daily transactions – from over 1000 by January 2011 to more than 20,000 transactions per day by mid-2012.

“[T]he Bitcoin user base began to expand from the developer, speculator and criminal communities, in part spurred by the fact that a number of retailers, both online and offline, were beginning to accept the currency”, it said.

Turning focus on bitcoin price, the report said that BTC/USD has increased dramatically since late May, rising to $738 on June 19, which marks its highest value since its collapse in February 2014. It attributed this price rise to factors which includes the upcoming halvening of bitcoin mining reward, continued weakness of Chinese economy and uncertainty over Brexit.

“Given Bitcoin’s continued upward trajectory and the likelihood that this will continue prior to the halvening, we believe that for 2016 as a whole, transcation value is likely to be at or around 3.5 times that in 2015”, it said. “Later in 2016, it is possible that speculation around the impact of a possible Trump Presidency may result in further heavy trading, while the ongoing ramifications around Brexit are also likely to act as an additional spur for higher activity levels”.

In conclusion, the report expects bitcoin price to remain high post-halvening until money supply is increased as owners start cashing in on hoarded coins, driving price down again.