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

• 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.