6 Tailwinds that will Push Bitcoin Price to Double in 2020

Get ready for a bullish 2020 that will see us finally breaking into a new all-time high.

  • The most widely traded BTC price provides good support, sustaining below this unlikely
  • In 2020, initial resistance would be at $10,000, but breaking this level should a “matter of time”
  • Declining volatility, limited supply, growing adoption, depreciating yuan, Tether dominance, mimicking gold to take us higher

After losing 16% of its value in November, the price of Bitcoin traded above $7,000 in the first week of December, going as high as $7,800. Currently, we are trading at $7,550, up by 2.80%, as per Coincodex.

Source: Coin360

Mike McGlone senior commodity strategist at Bloomberg Intelligence says 2019 was the year of Bitcoin’s transition towards the gold. This maturation process, he says would continue as volatility declines.

Just like with gold, Bitcoin is retracing a bear market, said McGlone in Bloomberg’s Crypto Outlook for December 2019 report. He sees $6,500 — the most widely traded price — as good support for the world's leading cryptocurrency and sustaining below this “unlikely”.

Actually, he says, there are higher chances of it going to a 2019 high than to revising the $3,360 low. This is because Bitcoin has already declined 50% from 2019’s peak, “which will limit further declines.”

In 2020, the initial resistance would be at $10,000 but breaching this should be just a “matter of time” especially if gold continues to advance as expected.

According to McGlone, there are several tailwinds that makes flagship cryptocurrency capable of doubling in 2020.

Volatility Set to Decline

Bitcoin price volatility will continue to decline next year, marking the completion of the transition from a bear to a bull market. Last time, it signaled the inception of the parabolic rally to the 2017 peak.

“The all-time low in 180-day volatility (41% in October 2015) should be revisited next year,” it reads.

Increasing institutional interest and vehicle for exposure such as futures and options are meanwhile contributing to the market’s maturity process.

Limited Supply

The new quasi-currency store-of-value, the report says will continue appreciating because of the key Bitcoin price tailwind, limited supply. Bitcoin has a limited supply of 21 million and the upcoming third reward halving will further cut down the inflation rate from 3.70% to 1.80%.

The only primary bearish factor McGlone says is the BTC price has appreciated so far so fast. And the normal market maturation suggests, it will take longer to hit the 2017 peak.

Growing Adoption

Among the cryptocurrencies, Bitcoin is winning the adoption race that combined with the asset becoming increasingly scarce favors price appreciation. The fact that most altcoins are too volatile further enhances the allure of Bitcoin.

Moreover, while there are only 17% more BTC to be created, the number of tradable crypto assets has more than doubled in 2019 alone.

Bitcoin will Closely Mimic Gold

Bloomberg analyst believes Bitcoin trading will closely mimic gold’s. The yellow metal has an upward bias and the 52-week beta of the crypto asset-to-gold is also highest since 2010, about 2x.

“Bitcoin's relative richness was last comparable to its 2017 surge.”

There is greater potential for continued climbs for Bitcoin in the long term and it shares similar factors with advancing gold.

Tether Dominance

Apart from Bitcoin, Tether is another leader of the crypto market. And Tether boosts Bitcoin as crypto standard, with little to dislodge either of them as the crypto asset leaders.

The report says while the popular stablecoin has positive implications for BTC, it has negative ramifications for most crypto assets. It increases the value of Bitcoin as an equivalent of gold while exposing the “fallacy of so-called cryptos.

“The rapidly increasing market cap of Tether is widening the disparity between Bitcoin and the most speculative digital assets (alt-coins).”

Depreciating Yuan

While Tether is appreciating Bitcoin, it is also depreciating Yuan. From 16th position by the end of 2017, Tether has grown to the fourth-largest crypto asset this year and that has been on the back of “an almost 8% decline in the Chinese yuan and 80% retreat in the Bloomberg Galaxy Crypto Index.”

The analyst also sees Bitcoin to keep on gaining recognition as the “standout independent store-of-value digital asset” just like gold.

Escalating trade tension, showing Chinese economic growth, depreciating yuan and unrest in Hong Kong are actually the “incentives” for currency diversification which would work in favor of Bitcoin.

Now as we march towards the end of 2019, 2020 has a pretty bullish picture to look forward to.

Live Bitcoin (BTC) Price:

1 BTC/USD =$11,844.5056 change ~ 1.54%

Coin Market Cap

$218.57 Billion

24 Hour Volume

$6.22 Billion

24 Hour VWAP

$11.78 K

24 Hour Change

$182.7740

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,468FansLike
2,795FollowersFollow
4,233FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Deregulating Bitcoin May Increase Speculative Trading Instead of Technical Innovation: Japan’s New Top Financial Regulator

Ryozo Himino, the new top financial regulator of Japan, wants the country to take caution over promoting digital assets, arguing that instead of promoting...

Goldman Sachs New Digital Asset Manager Reveals Plans to Bring A ‘Digital Token' to the Bank

U.S. financial giant Goldman Sachs is pushing forward its plans to launch a digital asset with the appointment of its new digital asset...

Grayscale Ethereum Trust Files with SEC to Halve the ETHE Locking Period Same as GBTC

Grayscale Investments has publicly filed a registration statement on Form 10 with the US Securities and Exchange Commission (SEC) on behalf of its Ethereum...

Florida Teenager Behind the Infamous Crypto Twitter Hack Pleads Not Guilty to 30 Counts of Fraud

Graham Ivan Clark, the 17-year old Florida teenager accused of being the main culprit of the most significant privacy breach in Twitter’s history, has...

Bitmain’s Management Feud Is Finally Affecting Business Operations; AntMiners Shipments Delayed

Bitmain’s top-level struggles cause a three-month delay in Antminer hardware. Two mutually exclusive solutions offered to customers. The constant wrangling within the largest Bitcoin...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today