Analytics / Forex and Crypto News
Of course, the price of Bitcoin could reach $20000 and it will reach it, but it will not be in early 2021. When some analysts predict that the price of Bitcoin will reach $20000 in early 2021, such a scenario seems unlikely. And there are several explanations for this.
First, the public interest in Bitcoin is significantly lower than it was in 2017. Secondly, the excitement that helped Bitcoin reach the price of $2,000 is missing. The main drivers of the Bitcoin price are not excitement, but fundamental data, mainly related to the devaluation of the US dollar.
If we analyze the price of Bitcoin, then it has grown by 200% compared to March 2020. And the price increase is connected either with the decision of institutional actors or the decision of the Federal Reserve System to maintain interest rates at about zero and buy government and corporate debt "as long as necessary."
It is also worth noting that Bitcoin investors have become more mature and experienced. If in 2017 they did not have a base for comparing price movement, then today you can compare Bitcoin price cycles. There is almost no "quick money" in the Bitcoin market, that is, money from investors who want to make money on a price rise from $10000 to $14000 in a couple of days.
All these factors indicate that the price of Bitcoin will rise, but it will take more than 3 months to reach the level of $20000. The price will rise at a smoother pace.