These 3 Things Will Send Bitcoin Above $15,000 In 2020 14

These 3 Things Will Send Bitcoin Above $15,000 In 2020

Over the past few weeks, Bitcoin (BTC) has absolutely been on a tear, gaining more than 30% from $6,750 to a high of $8,910 in this short period of time. Other cryptocurrencies, too, namely Bitcoin SV and Dash, have also exploded higher, posting jaw-dropping gains as a seeming bull run is back on the table.

According to a prominent industry research firm, this price action is a likely a sign that there is a “better and healthier dynamic underway this year,” This dynamic, they wrote, could bring Bitcoin towards $15,000 by the end of the year.

Here’s more on that.

Fundstrat Thinks Bitcoin Will Rally 100%+ Higher In 2020

Fundstrat Global Advisors, a top market strategy and sector research company based in New York, recently released its 2020 Crypto Outlook to its clients. Thomas Lee, the firm’s resident crypto bull and company head of research, released a portion of the report on Twitter.

In this sneak peek of the report, it was revealed that the American firm believes that Bitcoin has a “strong probability” of gaining over 100% in 2020, meaning a year-end price of over $15,000, due to a confluence of three primary factors.

  1. The Bitcoin halving: The crypto-friendly firm first looked to the May 2020 so-called “halving” or “halvening,” when the block reward of Bitcoin gets cut in half, effectively resulting in a 50% decrease in the inflation rate of the leading cryptocurrency. Analysts say that this should cause a supply crunch in the cryptocurrency market that could push prices dramatically higher. Not to mention, a price model created by pseudonymous quant PlanB, accurate to a 95% R squared when backtested, suggests BTC’s fair value will rise to $50,000 after the May 2020 halving.
  2. Geopolitical risk: Fundstrat next looked at potential geopolitical risks. With the ongoing conflicts between the U.S. and China, the U.S. and Iran, and other spats taking place across the globe, BTC may begin to prove itself as a digital, non-sovereign store of value in these trying times.
  3. 2020’s presidential election: Lastly, the firm looked to the 2020 elections. This point was not expanded upon, though there are notable a few candidates who are more crypto-friendly than others, such as Andrew Yang.

It isn’t only Fundstrat that is optimistic. Bloomberg analyst Mike McGlone wrote earlier this year that with Bitcoin maturing into more of an institutional, macro asset, it will likely start to trade alongside gold, which he claims is likely to outperform this year due to a number of factors.

Photo by Ingmar Hoogerhoud on Unsplash