March 28, 2024

Bloomberg named 3 factors that will ensure the growth of BTC to $ 20,000

Bloomberg named 3 factors that will ensure the growth of BTC to $ 20,000

Bitcoin and gold remain top candidates for the “best performing assets” in 2020. This is stated inrecent Bloomberg report.

High unemployment, impactnegative factors on supply and demand, social unrest in many parts of the world are forcing investors to hedge their portfolios with assets such as gold and bitcoin.

The report says that gold has strengthened itsposition as a hedging instrument due to the fact that it is traditionally considered a means of calculation and preservation of value. Bitcoin is only just paving a similar path, gradually gaining the trust of people.

The main reasons for optimism regarding the future of BTC

In its report, Bloomberg concludes that2020 will be a positive year for the main cryptocurrency. Bloomberg analysts are considering many possible catalysts for bitcoin, but they highlight three factors.

At first,They pay attention to the upward trend of Bitcoin, which is very similar to its price movement since 2016, since the second reduction in miner rewards (halving).

“In our opinion, after falling by almost 75% in 2018, bitcoin will reach a record level of $ 20,000 this year if it is going to follow the trend of 2016”, — says a Bloomberg report.

This is a popular opinion in the cryptocurrency community, especially since the third bitcoin halving occurred last month, which is tantamount to reducing the issue of the asset.

Secondly,Bloomberg analysts believe that the process of “maturing” Bitcoin is going faster than expected.

This “maturity” of Bitcoin is demonstrated by the fact that it easily survives the fall of traditional markets and the fall in prices of such important goods as crude oil, while also remaining the flagship of the cryptocurrency market.

In 2019, bitcoin derivatives alsohave shown tremendous growth, which indicates interest in the asset by institutional speculators and investors who use futures and options to hedge their funds.

Thirdly,Events related to COVID-19 have had a profound impact on our future, in which Bitcoin and cryptocurrencies are likely to thrive.

People are now fighting against the power of the state, staging mass protests around the globe, as was the case in Hong Kong and the United States.

COVID-19 drove the Fed into a corner, and now the US central bank is looking for a way out of this situation. This is what makes many think that it cannot go on like this.

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