It has been two years now that Bitcoin price hit its all-time high of $20,000 in December 2017. Since then it has been a tough ride for Bitcoin investors as the world’s largest cryptocurrency lost 80% of its value in 2018.
In April 2019, the crypto market along with Bitcoin revived as the BTC price surged from $3500 levels to go above $13,500. This price surge brought some renewed optimism among crypto enthusiasts. However, Bitcoin has been again moving sideways facing downward pressure since the last few months.
Pundits of the crypto market are still confident about Bitcoin’s future and giving massive targets for 2020. As we bid adieu to 2019, the debate around “Bitcoin Price in 2020” is now gathering steam.
Bitcoin to Reclaim Its Lost Throne
The latest report from Blockchain Capital suggests that BTC price will yet again touch $20,000 in 2020. In this report, Spencer Bogart from Blockchain Capital has published a list of 2020 predictions for cryptocurrencies.
2020 predictions from our State of Crypto year-end wrap-up (full report: https://t.co/ismqqKs1kA)
#7 is controversial. Those that don’t understand BTC will panic. However, not only would it be a positive development, it’s also an inevitable part of a successful BTC trajectory. pic.twitter.com/ePvqpH7ASz
— Spencer Bogart (@CremeDeLaCrypto) December 13, 2019
Furthermore, he added that with the growing number of transactions on the Bitcoin network, the cost of transactions will reach $100. During the peak of crypto markets in December 2017, the Bitcoin network got cluttered with massive trading volumes. The transaction fee during that time reached $55.
One of the major reasons for next year’s Bitcoin price rise is Bitcoin halving. Analysts have been major stressing on this for quite some time. Bitcoin halving is an event that occurs every four years wherein the block mining rewards are reduced to half. Before this event occurs, analysts expect everyone to rush for grabbing their BTC tokens leading to a price surge.
Several other analysts have been putting high targets like $50,000 and $100,000 for the BTC price in 2020. Well, the probability for the same looks quite less at this moment.
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
— John McAfee (@officialmcafee) November 29, 2017
The report further mentions that Bitcoin fundamentals continue to remain strong ahead. It states that the major focus of the Bitcoin network is currently privacy and scalability. It adds that the developments in network capacity improvement and Lightning Network channels are currently slow but continue to go at a steady rate.
Ethereum and Altcoin Growth
The report also puts some light on possible growth and changes in the altcoin space. Despite its falling prices, Ethereum’s fundamentals continue to grow stronger. The launch of Ethereum 2.0 will be a major turning event for the world’s largest altcoin.
The report also states that despite falling ETH prices, the Ethereum usage has surged in 2019, which is a positive sign for the network.
Coming to stablecoins, the report states that Tether will continue to lead the market. However, if different countries like U.S., China, and others launch their own CBDC, it remains to be seen how it would affect the stablecoin market.
With regulatory action getting strict next year, Spencer predicts the death of privacy coins like ZCash and Monero.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
