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Bitcoin price prediction 2020

By Elena Berton

The best known and most widely used cryptocurrency today, Bitcoin has seen its price fluctuate wildly in 2019. We look at its price prediction for 2020 and beyond

While not the first, Bitcoin is the most widely known and used digital currency in the world. For many people it’s is the only coin they think of when they hear the word “cryptocurrency".

Bitcoin is not controlled by a single organisation but is run by a network of computers situated around the world.

It allows people to send or receive money across the internet, even to someone they don't know, without going through a third party such as a bank.

And like any other currency, it can be traded in the open market.

Today, Bitcoin accounts for about 50 per cent of the entire cryptocurrency market and has the highest volume compared with its nearest competitors. Here is our Bitcoin price prediction 2020.

Price history

As with precious metals, the price of Bitcoin is determined by marketplaces solely on the basis of supply and demand. But unlike commodities, its price can be quite volatile, as its 10-year history shows.

The first trade dates back to May 22, 2010, when a British user on a bitcoin chatroom bought two Papa John’s pizzas for a man in Florida in exchange for 10,000 Bitcoins, which were worth around $41 (£30.70, €36.70) at the time. The two pizzas cost $25.

Bitcoin had made its first appearance in January 2009, when a person called Satoshi Nakamoto, whose identity is remains unknown, began producing Bitcoins.

Nine months after the pizza transaction, Bitcoin reached parity with the dollar, valuing the two pizzas at $10,000 on February 2011.

Then, after the Gawker website ran a story about the currency's popularity among online drug dealers, its value more than tripled in a week, soaring to about $27 in June 2011.

At the time, the market value of all Bitcoins in circulation was estimated at around $130m.

An American man dubbed KnightMB, who held 371,000 Bitcoins worth more than $10m, became the richest man in the Bitcoin world.

Today, an increasing number of retailers are beginning to accept Bitcoin as payment – and it’s even become possible to purchase property using this cryptocurrency.

Consumers who don’t have the advanced computing power to mine new cryptocurrency, or don’t want to, can purchase Bitcoin that already exists on crypto exchanges.

After hitting an all-time high of $19,900 on December 18, 2017, prices have fluctuated considerably. Bitcoin started 2019 at $3,715, then climbed to $12,575 on July 10, before declining inside a falling band pattern to around the $7,000 level.

It’s currently trading at $7,050, up 127 per cent from the low of $3,122 it hit a year ago. With this in mind, what are experts' Bitcoin 2020 predictions?

Will Bitcoin go up?

Computer programmer and businessman John McAfee believes that Bitcoin is primed for another boom because of its scarcity and increasing adoption among traders, sticking to his Bitcoin expectations of $1m by the end of 2020.

His Bitcoin price projections are based on the fact that there are round 86.2 per cent of the maximum total amount of 21 million bitcoins that can ever exist. This means that just 2.9 million bitcoins are left to be mined. As more people are adopting and buying Bitcoin, their price is expected to rise.

This is by no means the highest Bitcoin forecast 2020. McAfee’s prediction may be at the most bullish end of the forecast spectrum but other high-profile investors, such as Morgan Creek Capital CEO Mark Yusko, have predicted a price surge to $500,000 by 2030.

"By 2025, we're likely to see $250,000 Bitcoin and then some time out, 2030 we could see $400,000 or $500,000 bitcoin as it reaches gold equivalence," Yusko told Business Insider.

Yusko, a former Bitcoin sceptic, said he came up with his “hyperbullish” prediction on the basis that the technology is still in its early stages.

Bitcoin investor and venture capitalist Tim Draper has also stuck with his stance that Bitcoin could bypass the $250,000 level by 2023.

Last month Draper predicted that outfits such as the Lightning Network, which are designed to make smaller Bitcoin transactions quicker and cheaper, will be the catalyst for the next Bitcoin bull run.

"I think Bitcoin payment processors are really going to open the floodgates," Draper told the audience at the Malta AI & Blockchain Summit.

How much will Bitcoin be worth in 2020?

BTC predictions 2020 are hard to call. While support for Bitcoin seems to be holding at the $7,000 mark, the general sentiment remains bearish, which is reflected in the price of other cryptocurrencies, including Ethereum, which are trading close to their key support levels.

Bloomberg analyst Mike McGlone disagrees with the crypto traders’ bearish stance, predicting a positive outlook for Bitcoin in 2020 and beyond due to factors such as a gold rally, the mass adoption of the currency and its increasing scarcity.

He thinks that it’s only a matter of time before Bitcoin breaks the key resistance at $10,000.

“Plenty can go wrong with a nascent asset but unless the basic premises reverse there’s a higher probability to sustain price appreciation vs depreciation,” he wrote in a recent note.

Despite the downtrend seen in the second half of 2019, other investors are readying for a more positive Bitcoin price 2020.

A poll of more than 350 financial professionals undertaken by blockchain analysis company Chainalysis, has revealed that more than half of them are backing Bitcoin to outperform the S&P 500 stock index in 2020.

Blockchain and cryptocurrency data intelligence firm Glassnode recently tweeted that as investors have less profit to realise, sell pressure is starting to ease and will allow for upwards momentum to build.

“The bottom is close—and once it happens, the reversal will be strong,” the Glassnode analysts said.

On the other hand, trader Rakesh Upadhyay has argued that, based on the daily chart, bulls are still not aggressively buying at the current price levels of around $7,000 because they are not confident that a bottom is in place. It may not be a question of how high will Bitcoin go, but how far it still has to fall.

“A failure to bounce off the current levels is likely to drag the price to the recent lows at $6,502.15,” he wrote in his weekly forecast for currency.com, saying that a break below this level will dampen sentiment and delay the start of the next up move.

FURTHER READING: Bitcoin prediction this week: will the cryptocurrency decline further?

FURTHER READING: Bitcoin halving: could it reach $170k per coin?

FURTHER READING: Bitcoin explained

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