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Bloomberg Analysts See Bitcoin Hitting $20,000 Per Coin in 2020

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  • Bloomberg Analysts See Bitcoin Hitting $20,000 Per Coin in 2020

Following the third Bitcoin Halving, several Whales were reported to be hoarding the world’s most dominant Cryptocurrency, Bitcoin, ahead of a possible surge in demand for the digital coin.

Despite the coin failing to break the expected resistance level of $10,000 per coin, experts at Bloomberg believes the same digital currency would more than double in price this year to $20,000 a coin.

The analysts based their projection on historic patterns dated back to 2016, the last time the coin halved.

According to them, “Bitcoin is mirroring the 2016 return to its previous peak. That was the last time supply was halved, and the third year after a significant peak.

“Our graphic depicts Bitcoin marking time for a third year following the parabolic 2017 rally. After 2014’s 60% decline, by the end of 2016 the crypto about matched the 2013 peak. Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend,” the analysts stated.

Here is Bloomberg’s complete Bitcoin outlook for 2020

It should be recalled that the coin reward was halved on May 12 for the third time, reducing the total coin available for purchase substantially. This drop in supply was predicted to naturally bolster Bitcoin’s price above $10,000 like it was witnessed in 2012 and 2016. However, the uncertainty surrounding the global economy due to COVID-19 pandemic impacted capital inflow into the cryptocurrency market as projected by Investors King in May. Therefore, hurt the expected rise in price.

In recent weeks, the reports that certain large buyers, known as Whales, bought 12,000 BTC sustained Bitcoin price above the $8700 support level and eventually open up $10,000 resistance level anticipated by most crypto experts.

Bloomberg analysts used the same increase in buy and hold interest to validate the possibility of the coin breaking out from the current level.

According to them, “the Grayscale Bitcoin Trust (GBTC), the largest, is taking an increasing amount of supply off the market, yet its premium continues to decline.”

This, they said would further reduce supply in circulation and as usual support price above the current level.

“Exchange traded instruments, led by GBTC, are absorbing a significant portion of supply, indicating dip buyers and higher prices.”

Investors King note: While we are long-term bullish on Bitcoin, we are certain that the global uncertainty, rising risk and tension between the US and China would impact capital inflow expected to support price in the near-term. Also, this is largely the reason why Bitcoin failed to reach the expected price after the third halving.

Therefore, Investors King expects the rising popularity of the unregulated digital currency to aid its price from the current level in 2021 when global uncertainty is expected to subside and economies rebounded.

It should be noted that the days of retail traders and investors influencing Bitcoin are gone given its present price level of $9686. However, institution traders are wary of other policies they may arise per adventure central banks move to regulate the coin.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Cryptocurrency

New Survey Shows Two-thirds of Millennials Sees Bitcoin as Safe-haven

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A new survey conducted by the world’s largest independent financial advisory and fintech organisation, deVere Group showed millennials prefer Bitcoin to Gold as a safe-haven asset.

The findings by the Group revealed that more than two-thirds or 67 percent of the 700 plus millennial clients surveyed said they think Bitcoin, the world’s most dominant cryptocurrency, competes better against Gold, the traditional safe-haven asset.

The respondents drawn from North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia and Latin America were all born between 1980 and 1996.

Commenting on the findings, Nigel Green, the CEO, deVere Group CEO said: “From Ancient Egypt onwards gold has always had immense value and has long been revered as the ultimate safe-haven.

“It’s always been a go-to asset in times of political, social and economic uncertainty as it is expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses.

“But, as this survey reveals, Bitcoin could be dethroned within a generation as millennials and younger investors, who are so-called ‘digital natives’, believe it competes better against gold as a safe-haven asset.”

Speaking further he said: “Millennials are to become an increasingly important market participant in the coming years, with the largest-ever generational transfer of wealth – predicted to be more than $60 trillion – from baby boomers to millennials taking place.

“In addition, our world is becoming increasingly tech-driven and cryptocurrencies are, of course, digital by their very nature.

“Another key factor is the historic levels of money-printing as central banks around the world attempt to prop-up their economies following the fallout from the pandemic. If you are flooding the market with extra money, then in fact you are devaluing traditional currencies – and this, and the threat of inflation, are legitimate concerns to a growing number of investors, who are seeking alternatives.

“As such, and in-line with the findings that show that millennials have a preference for Bitcoin over gold, the cryptocurrency is set up for growing prominence as a serious safe-haven asset class.”

This may explain why the cryptocurrency is often referred to as digital gold, because like gold it is a medium of exchange, a unit of account, non-sovereign, decentralised, scarce, and a store of value.

Green concluded by saying “During 2020, a year of unprecedented financial turbulence, the value of Bitcoin has risen by around 170%.

“Bitcoin has been around a little more than a decade, but already accounts for more than 3% of gold’s $9 trillion market cap.

“As the world continues to shift towards tech and as millennials become a more dominant part of the world economy, we should expect Bitcoin to also take an increasingly influential role in financial markets, especially in regard to being a ‘recession-proof’ asset.”

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Pizza Hut Joins Burger King, Church’s Chicken to Accept Crypto Payments in Venezeuela

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Pizza Hut has joined other global fast-food chains like Burger King and Church’s Chicken already accepting crypto payments in Venezuela.

This was confirmed by a crypto services firm, CryptoBuyer, on November 27 after pizza Hut stores in the South American nation partnered with Mega Soft to drive adoption in Venezuela by encouraging crypto payments in its over 20,000 shops and businesses in the country.

Pizza Hut nowadays cannot be detached from these technological advances and all those incorporating new approaches for daily necessities,” said Richard ElKhouri, General Director for Venezuelan operations of the pizza chain, in an interview with local news outlet ElAxioma. “It is important that we accommodate young people, modern adults, and people technologically knowledgeable.”

According to Elkhouri, customers can buy pizza with Bitcoin (BTC), Litecoin (LTC), Dash (DASH), Binance Coin (BNB), Binance USD (BUSD), Ether (ETH), Tether (USDT), Dai (DAI), and its native token XPT.

This will further help deepen cryptocurrency adoption in the country and across the South American region.

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Bitcoin Rebounds; Gained 7 Percent to $18,116 Per Coin Amid Renewed Demand

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Bitcoin recovered most of its lost ground in the last 24 hours after dropping about $3,000 from $19,400 it exchanged a week ago to $16,800 per coin.

The world’s most dominant cryptocurrency gained 7.01 percent to close at $18,116.31 per coin on Monday morning at 8:46 am Nigerian time.

Investors jumped on the digital currency after Guggenheim Funds Trust filed an amendment with the U.S. Securities and Exchange Commission to allow its Macro Opportunities Fund to invest as much as 10 percent or $500 million of its $5 billion net asset in Bitcoin through Grayscale Bitcoin Trust (GBTC).

The news bolstered Bitcoin attractiveness as cryptocurrency investors interpreted as a new capital inflow that could aid the coin above the $20,000 per coin obstacle or resistance.

According to the amendment filed: “The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), a privately offered investment vehicle that invests in bitcoin. To the extent the Fund invests in GBTC, it will do so through the Subsidiary.”

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