Will Bitcoin go up? Here’s how the market is looking right now

Will Bitcoin go up this year – and could it ever reach $100,000? Find out what’s going on right now

For more than 10 years, it’s been a source of never-ending debate in the crypto community: will 0'>Bitcoin go up?

As we’ve explained recently, next month’s Bitcoin halving has sparked some feverish excitement. Explosive growth in BTC prices came after block rewards were slashed in 2012 and 2016, and some believe this is going to happen for a third time.

But let’s focus on the current state of play in this article and assess: is Bitcoin going up or down right now. Are the bulls or the bears in control?

Will Bitcoin go up?

The world’s biggest cryptocurrency had a dramatic start to March. Prices were flying high towards $9,000 until a crash now known as “Black Thursday” came along.

On 12 March and into the early hours of 13 March, 0'>BTC dived from $7,900 to lows of $4,106.98 – levels that hadn’t been seen for 12 months. To put this into perspective, that’s a decline of almost 50 per cent in the space of just a few short hours. It was a massive bloody nose for the bulls, leaving hopes of returning to five figures in tatters.

Will Bitcoin go up? Here is how the market is looking right now

Although BTC quickly recovered from this low in a matter of hours, the question was now this: will Bitcoin go up, or will it continue to test lower lows?

Over the past few weeks, BTC has been trudging back up through the $5,000s and $6,000s, but there’s a new challenge for the bulls. Attempts to break through the $7,400 range have been met with fierce resistance – and in the early hours of 16 April, a nasty correction saw BTC finish the session below $6,666, a figure of psychological significance.

The question of will Bitcoin go up has also been complicated somewhat by a surprise development in recent weeks: an unsettling close correlation to the stock markets. Huge sell-offs on Wall Street brought about by the coronavirus crisis also appeared to have an impact on the crypto market. Some of the worst days on the Dow and the FTSE were met with equally painful losses for BTC. (It’s worth stressing that, overall, cryptocurrencies have weathered the storm far better than traditional markets.)

So… is this correlation going to be in place indefinitely, or will we see a decoupling soon? And does Bitcoin’s performance put its status as “digital gold” into disarray? Only time will tell – but there is another factor that could work in BTC’s favour.

Will Bitcoin go up again because of stimulus packages?

For 0'>Bitcoin believers, one of the most important developments in the Covid-19 pandemic has been the response of central banks in protecting traditional economies. In the UK, hundreds of billions of pounds is being set aside to support workers who have had their livelihoods affected by the crisis. Of course, this cash can’t be found down the back of the sofa, meaning that the Bank of England is having to borrow astronomical sums of money to fuel its stimulus plans. It’s much the same over in the US, where the Federal Reserve is firing up its money printing presses.

Advocates argue that crypto was invented specifically for times like these. The act of printing new money – otherwise known as quantitative easing – has the effect of making pounds and dollars already in circulation less valuable. A good analogy is to think of a rare diamond ring. If just one is in existence, it could be worth $500,000. If 1,000 identical rings flood the market, its value would almost certainly decrease.

Contrast this with Bitcoin, which has a fixed supply of 21 million. Will Bitcoin go up as investors attempt to shield their portfolios against inflation? Many analysts seem to think so.

Will Bitcoin go to $100k?

Will Bitcoin go up again to its all-time high of $20,000, or even hit six figures? It’s impossible to know for sure.

On one hand, you have sceptics who repeatedly warn that Bitcoin investors should be prepared to lose everything – and that the cryptocurrency’s value will eventually dwindle its way down to zero. On the other, there are millionaires and billionaires with crypto funds who continually maintain that big things are just around the corner – a return to $20,000, a parabolic bull run to $100,000, or dizzying new heights of $1 million. These predictions have been made for years.

Both of these scenarios are just as unlikely as the other. Proclamations that Bitcoin is a bubble just waiting to burst fail to acknowledge that the cryptocurrency has been around for more than a decade now – it has staying power. It’s also hard to say predictions of 0'>Bitcoin reaching six figures are credible. We’ve already seen estimates of BTC hitting $320,000 by 2018 fall by the wayside, and given we’re almost halfway through 2020, it’s an understatement to say that Bitcoin’s chances of hitting $1 million by December are remote.

Bitcoin to US Dollar
Daily change
47578.4
Low: 46768.8
High: 53590.4

There is precedent for BTC’s value increasing substantially in the aftermath of a halving. When will Bitcoin go up after this happens – if at all? Well, based on what’s happened in the past, any appreciation normally comes 12 to 18 months later, so it’s worth being patient and remembering that this is a long game. Do remember that a halving isn’t necessarily a path to untold riches, either. When block rewards for Litecoin were slashed by 50 per cent in August 2019, its value had actually dwindled by 60 per cent come December.

Ultimately, the best advice is to take all of these “will Bitcoin go up” predictions with a liberal pinch of salt. Experts in the past have said that it’s worth having a very small percentage of your total investment portfolio in cryptocurrencies – perhaps 1 or 2 per cent, but never anything more than 10 per cent. This means that you’ll enjoy some upside if prices do rise but won’t be left in financial distress if they crash.

FURTHER READING: Bitcoin explained simply: everything you need to know

FURTHER READING: Where and how to sell Bitcoin: everything you need to know

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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