Bitcoin is likely going to soar in value in 2020.
The world’s largest cryptocurrency is already one of this year’s best-performing assets, and according to Bloomberg analysts this week, the price could make the leap to $20,000 before the year’s out.
Up to now, Bitcoin price is already up around 30% from the beginning of 2020, following wider positive investor sentiment.
Bitcoin late Thursday was at $9,783. It breached $10,000 twice after the "halving" but retreated as it found tough resistance at that level, Reuters reported.
However, I wouldn’t be surprised to see Bitcoin further increase in value during the remainder of the year for three key factors.
First, is the massive quantitative easing programmes being implemented by central banks across the globe. This large-scale money printing devalues traditional currencies, yet boosts other recognised stores of value, such as the likes of Bitcoin and gold.
Second, the coronavirus pandemic has greatly accelerated the demand and need for digital currency.
Third, is that Bitcoin is a legitimate hedge against inflation worries over the longer-term.
Since the start of May, global client interest in Bitcoin as well as other cryptocurrencies such as ETH has skyrocketed.
Indeed, we’ve seen a 25% month-on-month rise in enquiries about our crypto exchange app, deVere Crypto.
This is predominantly because the COVID-19 pandemic has collectively focused minds on the need to readjust and adapt to a new world.
Naturally, our lives will become more and more technology driven, including our financial lives, with cryptocurrencies such as Bitcoin, and other fintech solutions, playing an ever more significant role. However, the pace of this change has increased dramatically with the coronavirus pandemic.
Furthermore, geopolitical risks, such as the mounting tensions between the United States and China, the U.S. presidential election and Brexit will also likely serve as a boost for Bitcoin.
Indeed, investors will enhance their exposure to decentralized, non-sovereign, secure digital currencies, such as Bitcoin, to help protect them from the probable issues within the traditional markets.
As it stands, this year’s global health crisis, the record-breaking policies put in place to ease economic downturns around the world, ongoing political uncertainty and social unrest can, in all likelihood, be expected to push the Bitcoin price skywards.
Nigel Green is founder and CEO of deVere Group. One of the world’s largest independent financial advisory organizations, de Vere does business in 100 countries and has more than $12 billion under advisement.
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