TOP 5 Bitcoin exchange rate growth factors in 2020

The current year 2020 can fully become the year of Bitcoin. Many analysts argue that fundamentalsMarket indicators and technical indicators indicate the upcoming strong growth of the leading cryptocurrency.

BeInCrypto analysts identified the five most significant factors indicating the inevitable rise in the price of bitcoin.

The most obvious is halving

Halving bitcoins is due to happen in May, andhistorically, this has always been preceded by price increases. However, most of the previous cuts in bitcoin miner remuneration showed a more significant gain after halving. This indicates that Bitcoin will close this year especially hard.

Global debt growth

Debts around the world have grown rapidly in the last twodecades, and last year they exceeded all previous records. By the end of 2019, global debt was estimated at $250 trillion. Such unsustainable performance indicates serious problems in the modern fiat system. Moreover, Bitcoin is a deflationary currency.

Cash flow tightens

Bitcoin, often called "digital money,"provides us with a decentralized alternative to modern traditional money. Given the recent restrictions on cash transactions, a smooth transition to the use of bitcoin and other cryptocurrencies may occur.

Banks continue to abuse their financial power

Last year there was a noticeable increasethe amount of money that central banks send to the economy to keep it afloat. In January alone, the New York Federal Reserve invested $ 57.7 billion on January 4 and another $ 55.3 billion on January 24. This is more than $ 100 billion a month to “calm the markets.”

Already in February, the People’s Bank of China in response toCoronavirus concerns printed about 1.2 trillion yuan ($ 173.8 billion) to alleviate economic problems. This is almost exactly the total capitalization of bitcoin today ($ 177 billion).

Historical pattern

The fifth factor is indirectly related to halving, and claims that every third year of the four-year halving cycle, bitcoin gropes the market bottom.

During the first 4-year cycle in the history of the asset, it grewby approximately 13,378%. In the second cycle, growth was 12,160%. We can only wait, but for now Bitcoin almost every day “draws new highs for 2020, the day before yesterday reaching $9,715, and yesterday rising in price to $9,860.

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