Will Bitcoin be able to repeat the previous records?
Bit News discussed with experts whether Bitcoin will be able to repeat the rise to $ 12,000 in the near future, how much the cryptocurrency will cost by the end of the year, and how the position of the digital asset market will change with the arrival of autumn.
Financial analyst at the investment company Raison Asset Management drew attention to the fact that in recent months, market participants have seen an increase in demand for the first cryptocurrency. In his opinion, by the end of the year, it may well break through the resistance level of $ 12,000.
“If this happens, the road to $ 15,000 and more will be opened,” the expert says.
As the expert notes, at the moment the news background is positive for Bitcoin. Financial regulators of developed countries, including the Fed and the ECB, “inflate” the money supply. This is a plus for BTC as an asset with limited emission. The expert also drew attention to the fact that the halving that took place this year, he believes, has not yet been won back by the price of the cryptocurrency.
Another positive factor for BTC, he calls changes in the laws of different countries in favor of greater loyalty to cryptocurrencies. In particular, he draws attention to China – the country’s regulators intend to launch the digital yuan. There is also talk in the market about a digital dollar. This increases investor confidence in cryptocurrencies in general.
At the same time, the expert believes that Bitcoin long-term forecasts should be done carefully since its future depends on various factors. On the other hand, over a long horizon, one can expect a significant rise in the price of BTC, thanks to its limited emission and positive changes in the laws of different countries.
According to the expert, the most effective Bitcoin investment strategy is HODL. However, he warns that this approach also has risks, in particular – the emergence of more advanced crypto technologies.
“Technically, Bitcoin is already outdated: its mining is expensive, security is not at the highest level. New currencies are constantly emerging. BTC is still leading in terms of capitalization, however, since 2014, the trend has been downward: the share of bitcoin in the market as a percentage of other cryptocurrencies is gradually decreasing. So I would not recommend investing more than 10% of the investment portfolio in the coin,” the expert summed up.
In the short term, you can count on $ 12,000 for BTC in early September, another financial analyst is sure. Further, the situation will depend on the mood of investors, and the expert himself is now “extremely optimistic”.
The expert does not doubt the growth of the main digital currency and the entire crypto market for several reasons:
All these factors give hope for reaching an all-time high for Bitcoin before the end of this year.
The maximum Bitcoin value was reached at the end of 2017, near the level of $ 20 thousand.
The digital asset has “all the trump cards in hand” to overcome $ 12 thousand within a month, towards the end of September.
According to historical dates, more often the cryptocurrency grows towards the end of the year, closer to Christmas and New Year, and then closer to the New Year according to the Eastern calendar. At least this was the trend in previous years.
However, it is likely that Bitcoin will not update the absolute maximum in 2020, as the price of Bitcoin is greatly influenced by investor sentiment in the market.
The new maximum will be set in the fall of 2021. By that time, the effect of the third halving should be fully revealed.
Bitcoin Forecast: BTC Will Be Able To Reach New ATH In 2020
Credit Bubble And Multiple Profits: What’s Happening In DeFi Market
Ethereum Price Analysis: ETH/USD Will Drop To $310
How Will Bitcoin Price Change Until The End Of 2020 – Expert Opinions