Bitcoin’s Fate In December 2020br>
The emergence of Bitcoin in 2009 was not met with high anticipation initially. However, the idea of a currency that would provide a high level of anonymity, security, and speed of transaction was very appealing. After Bitcoin, numerous cryptos emerged and it should be said that they have changed the financial world upside down. Now some companies are slowly moving to the crypto payment.
The major turning point for Bitcoin was 2017 when the cryptocurrency reached its maximum and after that only continued to surge in popularity. Right now the price of Bitcoin equals over $10,000 and while the coronavirus pandemic impacted BTC notably it still managed to get on its feet.
What will await Bitcoin in December 2020? It is a very interesting question and basically making correct predictions is not that easy, because of the nature of Bitcoin itself. However, in this article, we will try to answer this question.
Hard to foretell BTC’s future
Experts believe that it is impossible to make forecasts on the Bitcoin rate for an exact date. They explain their point of view by the high volatility of the first cryptocurrency. In addition to factors such as demand and legal regulation, the manipulation of large players affects the price of Bitcoin. In addition, now, during the coronavirus crisis, the volatility of bitcoin – like other investment instruments – has increased. So we can only talk about probabilities and trends.
Experts draw their attention to the fact that at the moment Bitcoin is trying to gain a foothold above $12 thousand. If the designated milestone is taken, by the end of the year, the first cryptocurrency is likely to cost more than $13 thousand.
Christmas, pandemic and economic lockdown
Christmas is in December, but the economy may still be closed down in the majority of the world, so consumer spending is going to be at an all-time low when everybody expects it to skyrocket. Because of this, there may be a sudden surge in BTC trading volumes as it’s been observed that when fiat is in trouble BTC tends to consolidate power. It’s already quite obvious because almost all automated forex strategy plans have already been altered, which is yet another telltale sign that everybody is bracing for Christmas 2020.
We could also see a decline
As it is noted the growth will be due to, among other things, halving, the potential of which has not yet been realized. However, at the same time, we do not exclude the possibility of a cryptocurrency rollback to $11 thousand and below, especially in the event of the second wave of the pandemic and the exacerbation of the economic crisis.
It is also worth noting that the market has not yet won back the consequences of the reduction in the block reward. Only four months have passed since the halving in May, and this is too short a time to see its result.
If you look at the Bitcoin rate in 2012 and 2016, when the level of remuneration for mining cryptocurrency was also halved, we will see that the halving effect was felt for about a year and a half. We saw a jump in prices in 2013, we saw it in 2017 – just 12-18 months after the halvings.
At the same time, the experts note that by the end of the year they would like to see the Christmas rally of Bitcoin and the capture of the $15,000 milestone. There are all prerequisites for such a development of events.
Opinions of members of the crypto community
Analysts at Econometrics have given a more optimistic forecast for the movement of Bitcoin. In their opinion, by December 31, 2020, the cryptocurrency will be able to reach the level of $41 thousand. Analysts have made a forecast based on the study of the trajectory of the BTC rate after previous halvings.
Other people also agree with Econometrics’ prediction. In their opinion, Bitcoin will be able to end the year near the level of $41 thousand. Some of them also give a forecast for Ethereum, the second-largest cryptocurrency by capitalization. The coin will rise in price by the end of the year to $6 thousand.
All forecasts are nothing more than speculations. No one knows exactly how the course of the most capitalized cryptocurrency will move further. However, we can note several points from experts above:
- The members of the crypto community do not have enough statistics to identify the peculiarities of the behavior of the cryptocurrency rate after halving;
- Analysts’ opinions on the local maximum during 2020 differ: some see the prospects for cryptocurrency growth up to $15 thousand, others – up to $1 million;
- Many factors influence the behavior of Bitcoin. The future of the coin, among other things, depends on the news background around the digital asset market.