- Bitcoin rating upgrade the result of positive price action and improved fundamentals
- Weiss Rating expects BTC to surpass 2019 high, “confirming the new BTC bull market that began in December of 2018”
Bitcoin has gotten a rating upgrade from Weiss Ratings, an “independent” rating provider of cryptocurrencies, stocks, mutual funds, ETFs, and financial institutions.
The overall rating of the world’s leading cryptocurrency has now improved to A- which is “excellent.” This upgrade has been the result of positive price action as BTC moves from $3,200 on Dec. 2018 to the current $9,800. Also, the improved fundamentals in the form of increasing active addresses, transaction value, and transaction count.
— Weiss Crypto Ratings (@WeissCrypto) February 7, 2020
While the technology and adoption of the cryptocurrency get an A “excellent” from Weiss Ratings, market performance grade is a B- because of the risk involved.
Listed on 126 exchanges, there are 7,359 trading pairs available in the market of BTC with other cryptos and fiat currencies. BTC/USDT is the top pair that accounts for 47.9% of the trading pair share.
BTC to surpass 2019 high & confirm the new BTC bull market
Bitcoin’s price has been trending up since bottoming out in December 2018 at $3,200. In 2019, Bitcoin surged over 85% and made a yearly high at $13,900.
In 2020, BTC/USD is up 33.50%. Weiss Rating, however, expects BTC to surpass 2019 high, “confirming the new BTC bull market that began in December of 2018.”
Towards the end of last month, Bitcoin made a long term trend reversal by breaking above 200 day moving average. Historically, this means, Bitcoin would see an average of 200% returns in the following six months.
So a new two-year could be very well expected, it is also possible Bitcoin will finally break into a new all-time high, $20,000 this year.
But Correction before $15,000?
The upcoming halving event is also expected by some to give a boost to price as Jehan Chu, co-founder of blockchain-focused venture firm Kenetic Capital, told CNBC that “BTC is poised for a breakout run to $15,000 by mid-2020.”
“The bitcoin halvening as well as the recent surge fueled by pandemic fears and public market jitters is yet another reminder that bitcoin is much less risky and offers potentially outsized returns.”
However, according to Weiss Ratings, we would first see a correction before moving onto hitting those highs.
“First, don’t be surprised if BTC suffers a short-term correction,” said Weiss Ratings.
In the long-term get ready for $8 Trillion Market Cap
Meanwhile, Andy Edstrom of investment advisory firm WESCAP Group says over the next ten years a number of factors may boost BTC price to take it to $8 trillion market cap.
“When I set the upside case from an investment point of view, I take a 10-year view. And I think the total valuation on 10 years that I use is about $8 trillion and that comes from various buckets,”
that includes share from gold, or fiat, offshore assets, other stores of value like real estate, micropayments, Lightning, Abra, or new uses that are either under construction or not thought of yet.
Moreover, Fidelity and New York Stock Exchange's parent company ICE entering the market through Bakkt he said is the real deal.
Also, when Bitcoin takes out the previous peak and we’re back above $20k, “that’s going to be a catalyst that some people who aren’t paying attention now will pay attention to.”