June 18, 2024

TOP 3 bitcoin price growth factors in 2020

TOP 3 bitcoin price growth factors in 2020

The cryptocurrency market is still in a bit of a doldrums, but there are three upcoming events that are likely toportend us their revival in 2020.

Reduction of miners' rewards — halving

This important event is the halving that takes placeevery 4 years, will help the growth of bitcoin in 2020. Historical trends indicate that before the halving, there was some impulsive growth of the main cryptocurrency, which was then replaced by mass growth. Less than 150 days are left to the nearest halving, and it is scheduled for May 14, 2020.

The price of Bitcoin (BTC) rose after the halving in 2012 and 2016, and so far there are no good reasons to say that there will not be a similar increase.

The event will consist in the fact that bitcoin miners will begin to receive half as much for the mined block - 6.25 BTC instead of the current 12.5 BTC, which will also reduce inflation to 1.8%.

According to the analyst of Plan B, after this event, the ratio of stocks to growth (S2F) will double, which will become an optimistic factor for the price:

“The S2F model predicts an optimistic long-term trend, while the greed and fear index [greed & fear] causes the real price of Bitcoin to follow this trend.”

PlusToken Bitcoin Sale Ends

There have previously been reports that participants in the PlusToken scam are still selling off their bitcoins, which may have contributed to the cryptocurrency market's decline in the second half of 2019.

The research company Chainalysis reported that Chinese scammers were able to accumulate bitcoins worth more than $ 3 billion.

This sell-off, according to some researchers, began in August, with scammers actively using crypto exchanges, mixers and over-the-counter brokers to launder illicit funds.

And here is what an outstanding market analyst Alex Kruger says:

“An analysis from Chainalysis indicates that withmid-April 2019, PlusToken scammers cashed out approximately 25,000 BTC. This is approximately 6% of what miners get. Therefore, it is reasonable to assume that PlusToken has become a "secondary" variable that adversely affects the price. "

“From 30% to 40% of PlusToken’s sales occurred before Bitcoin’s price increase, while other sales contributed to the price drop.”

Thus, as soon as the Bitcoin saleIf PlusToken ends up with scammers, then more favorable conditions may arise for the price of the main cryptocurrency. As cryptanalyst Ergo said at the end of November, such a period could take 1.5-2 months.

Ethereum Factor

In 2019, bitcoin was the driving force for the entire cryptocurrency market, and its dominance index exceeded 73% during the peak.

It is possible that Ethereum will also have its starry day in 2020, as cryptocurrency is in the process of gradual transition to the PoS consensus protocol.

In 2019, other PoS-based cryptocurrency assets (e.g. Tezos) showed excellent results, as now many investors are looking for passive income.

Final transition to Ethereum 2.0 will take almost two years, but some of the planned updates to this network will already be implemented in 2020, which will also allow investors to take advantage of the staking opportunities on this platform.

If you also consider the growing marketSince decentralized finance (DeFi), which mainly relies on Ethereum, we can safely talk about good chances for the cryptocurrency market to recover in 2020.