Why will the price of Bitcoin double to $20,000 this year?
Bloomberg says that everything indicates that Bitcoin may break the highest level ever this year.
Bitcoin’s recent movements
Bitcoin at the beginning of the month, overcoming a level of resistance of $10,000 fell sharply to $8600 and is now at around $9,500. Despite the brutal sale of BTC, Bloomberg’s senior analyst Mike McGlone believes that BTC will reach a price of $20,000 by the end of 2020.
McGlone explained that Bitcoin’s stock prices over the past few months, before and after halving in May, look very similar to those of 2016. If historical correlations continue and the trend of 4 years ago is followed, Bitcoin may reach new heights.
The optimism of the senior analyst boils down to a high convergence of factors such as share sales and attracting more investors, institutional use of cryptocurrencies, increase in the number of BTC addresses and May halving which has a positive impact on the dynamics of demand and supply in the crypto market.
Impact of COVID-19
A report from Bloomberg suggests that the coronavirus pandemic has accelerated the growth of Bitcoin as an asset, showing investors its strength among the declining stocks.
The global economic crisis has attracted the interest of institutional investors, in particular Grayscale and GBTC, who have bought out about 25% of new Bitcoin supply. At the same time, many billionaires invested some of their money in Bitcoin in fear of a decline in the value of their money.
McGlone of Bloomberg is not the only one who predicts increases. BitMEX CEO Arthus Hayes also believes that the assets are on track to set a new record this year. So does Dan Morehead of Pantera Capitals, explaining that as governments print more and more money, the crypto value increases.
New BTC peak
According to the Bloomberg Report, something really would have to go very badly for Bitcoin not to grow. The price is expected to go up to $20,000 according to analysis, with the possibility of going up to $28,000 in the most optimistic version of events.
One of the main reasons for Bitcoin’s recent recognition is the rapid growth of Tether (USDT). As early as May 2019, its market capitalization was 4 billion dollars, and a year later it rose to 10 billion dollars. The increase in the circulation of Stablecoins indicates greater acceptance of cryptographic assets in the market.
With mid-2020 behind us, we shouldn’t wait long to see whether Bloomberg’s forecasts are correct. Perhaps those interested who will now buy BTC at the end of the year will get a 100% return on investment.