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Bloomberg: Bitcoin price will reach $ 20,000 in 2020

Bloomberg analysts say Bitcoin is expected to return to $ 20,000 this year.

According to analysts at Bloomberg, the price of Bitcoin will rise this year as it experienced the lowest relative volatility. The price appreciation is firming independently compared to the broader cryptocurrency market.

Bitcoin appears to be converging on the $ 10,000 resistance, an indication of its relative appreciation compared to the market. If the price increase continues, Bitcoin could leverage the crypto market, especially with the unmatched flexibility of the central bank.

Can history repeat itself?

Analysts say Bitcoin is repeating the moves of 2016, the year of its second halving. In 2014, there was a 60% decline in price, but Bitcoin reached its historic high by the end of 2016. The forecast states that Bitcoin will reach a record high of around $ 20,000 later this year, following the 2016 trend. .

Some of the factors that can contribute to the appreciation of the price of Bitcoin are maturation, greater depth and more exposure via futures contracts. These factors will suppress Bitcoin’s volatility, ensuring that the price continues to rise. In addition, the trend may be affected by a stock market rollover, raising the price of BTC above the $ 10,000 mark.

Bitcoin gaining advantage

The effects of the pandemic are accelerating Bitcoin’s maturity, supporting an appreciation in the price of cryptocurrencies. This is due to the historic decline in stocks and the most important commodities in the world, such as oil and stocks. The March crash provided a basis for higher prices for Bitcoin, as it was an important test that Bitcoin passed easily. Bitcoin’s historical volatility readings indicate that the cryptocurrency has undergone the lowest 260-day volatility measures in history. This is not the case with the stock market, which has been very volatile, especially during these times.

In addition, Bitcoin is expected to continue appreciating compared to crude oil. According to Bloomberg analysts, Bitcoin’s 260-day volatility measure is about 0.6 × that of crude oil.

About three years ago, when Bitcoin was at its peak, that measure of volatility was around 3.5 ×. Bitcoin is also less dangerous compared to crude oil, so it takes the advantage and the likelihood of a price increase is in your favor.

Favorable trends in Bitcoin futures also support an increase in price. These futures are a representation of maturing towards the mainstream of assets. An increase in future open interest in Bitcoin can guarantee a stable price premium, reducing volatility and increasing demand.

Source: zycrypto

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