Analytics / Forex and Crypto News
The second half of 2019 was not the best for Bitcoin. He managed to get down from the $ 9500 area to a new low of this year in the $ 6750 area. And at the time of publication, it is trading at around $ 7,400.
Many analysts attribute the decline in bitcoin prices to the regulation of digital assets in China and crypto whale games. Despite this, analysts are optimistic and expect Bitcoin price growth in 2020. Some fundamental factors will contribute to this.
An analyst at Bloomberg, Mike McGlone, provides some evidence of his forecast for the price of Bitcoin in 2020. One of the main conditions for Bitcoin price growth will be the maintenance of the support level of $ 6500. But there are also several factors that Mike McGlone pays attention to when predicting the price of Bitcoin.
The first is the connection between Bitcoin and gold. If the price of gold rises, then the price of Bitcoin should also rise. In the summer, amid negotiations on a trade war, gold reached a maximum, now its price is decreasing, but the macroeconomic picture may begin to favor gold and, therefore, Bitcoin. The possible resumption of the trade war due to Hong Kong rules and other major problems in the traditional system could lead to increased interest in alternative assets.
Secondly, we are witnessing the creation of ideal conditions for the beginning of the growth in the price of Bitcoin: the massive adoption of Bitcoin and fixing its offer. The adoption of Bitcoin will lead to an increase in demand for it and, accordingly, to an increase in prices in conditions of limited supply. The offer may be limited due to halving when bitcoin mining becomes less profitable. This is the usual economy of supply and demand.
Thomas Lee, a consultant at Fundstrat Global Advisors, highlighted similar factors in favor of a rise in Bitcoin prices in 2020. He also believes that halving will be a negative factor for miners, but positive for investors. A decrease in supply will increase the price of bitcoin with growing demand.
Although China still has a tough stance on Bitcoin, the Chinese authorities remain committed to digital technology, namely the blockchain.
During November, ICO-projects sold 416K ETH. This is the largest figure since the summer, reports Trustnodes.
According to Santiment, in August, ICO startups sold only 100,000 ETH. In September, sales of digital currency increased significantly, reaching 300 thousand ETH. In Nov