The second half of 2019 was not the best for Bitcoin as it dropped from a yearly high of $14,000 in June to the current $7300. In its minimum, the cryptocurrency was even at the level of $6600 on the background of oversupply, which, probably, was also supported by a dump from PlusToken.
Despite such problems, Bloomberg analyst Mike McGlown said that “the Bitcoin forecast for 2020 and decades is positive because of a number of factors. These factors, according to McGlown, will soon “put Bitcoin back in the five-digit range,” and this will be a pleasant surprise for many investors who have already begun to think about “crypto winter”. According to McGlown’s analysis, the rapid growth of Bitcoin in the near future will be based on a key support level of $6500. Overcoming $10,000, according to the analyst, is “just a matter of time”. Bloomberg analyst also named the growth factors:
- First of all, in his opinion, the gold rally should push Bitcoin to growth. Although while gold is declining, the macroeconomic picture may begin to favor it in 2020 (and then the Bitcoin), a potential recession, the resumption of trade wars and other problems of the traditional system may lead to the growth of alternative assets.
- Second, McGlown believes that the massive recognition and supply shortage of Bitcoin benefits from a highly adverse environment for the traditional economy. Until these basic assumptions of Bitcoin are reversed, there is a high probability of a price increase, McGlown said.
The analyst, of course, takes into account the upcoming miner’s fee reduction event and also relies on a simple law of supply and demand.
Tom Lee from Fundstrat, recently speaking at CNBC, drew attention to three positive factors that may push the Bitcoin price up in the coming year:
- The strong growth of U.S. stocks, namely the S&P 500, implies that investors are likely to allocate funds to risky assets such as Bitcoin and cryptocurrencies;
- Future reductions in Bitcoin rewards (issues) will increase demand for BTC over time and have a positive impact on the price of the coin;
- Although China is tough on the cryptocurrencies, its warm attitude towards blockchain technology will ultimately have a positive impact on the cryptocurrencies as well.