Bitcoin To Dump Near The Halving While One Crypto Will Go Parabolic: Predicts Alistair Milne
- Bitcoin price to test ATH towards the end of the year
- While a central bank will finally issue its stablecoin, Facebook’s Libra won’t launch
- On the regulatory front, KYC/AML to become a requirement for major derivatives exchanges
- 2019 is just about to end and crypto commentators have started giving out their prediction for 2020.
While the projection for Bitcoin price is just about anywhere from $5,500 to $40,000, the overall market is expected to see much growth, from increased staking, a substantial increment in the amount locked in DeFi and continued growth of Bitcoin network fundamentals to increased regulatory pressure.
Now investor and entrepreneur Alistaire Milne, CIO at Atlanta Digital Currency Fund is making his predictions for next year.
Where will BTC Price be in 2020?
To start with Bitcoin prices, he sees it getting close to the 2019 high, $14,000 before the halving only to dump near the event. This will be followed by the digital testing ATH towards the end of the year. Milne said,
“Everyone that said the halving was priced in will avoid admitting their mistake.”
Currently, Bitcoin is trading at around $7,300, the level seen before Facebook launched the whitepaper of its digital currency, Libra that has been believed to be the driver behind Bitcoin’s bull rally in the Q2 of 2019. At that time, it took us from $7,500 to $9,000 in the week preceding this news. Then, after the announcement, BTC rallied to $13,900 on the back of mainstream FOMO.
But now that it has become apparent that “Libra may never be allowed to launch by many governments,” this potential driver deflated, says Milne. Although the slow deflation he says is logical,
“the sell-off has created unrealistic and slightly irrational bearish sentiment despite the inevitable approach of Bitcoin’s production rate cut, alongside many other bullish indicators (e.g. Tether issuance at $300mil/month).”
Big Things Coming for Stablecoins
He is actually predicting USD-pegged Tether to break a $10 billion mark for assets under management (AUM). Earlier this year, it has been found that USDT is backed by only 74% of cash while the remaining reserves include assets and receivables from loans made by Tether to third parties.
Just like market analyst Tone Vays, Milne sees Bitcoin dominance getting close to 80%, excluding stablecoins which means while the flagship cryptocurrency price would soar, altcoins are expected to only fall lower.
While the leading cryptocurrency won’t be hitting a new all-time high yet, Bitfinex’s token LEO is projected by him to go parabolic. This will be the result of Bitfinex recovering some of the lost $850 million funds.
When it comes to state-backed stablecoins, Milne says a central bank will finally issue one that would be available only to banks and financial institutions. As for the social media giant, Facebook’s Libra, he doesn’t see it launching.
What’s on the Regulatory Side?
On the regulatory front, know-your-customer and anti-money laundering (KYC/AML) is expected to become a requirement on all major derivatives exchanges.
Meanwhile, Milne says major banks will launch crypto-custody solutions, which could be through acquisition.
Last but not the least, self-proclaimed anonymous Bitcoin creator, Craig Wright who has been ruled by the judge to surrender $3 billion of his BTC holdings won’t be able to do so.