Bitcoin (BTC) Rally Is On Its Way – Three Main Triggers
The crypto market looks pretty much green today. Bitcoin is trading in the green as well, and at the moment of writing this article, the most important coin in the market is priced at $8,142.92.
Massive Bitcoin rally expected
Despite the huge volatility of the crypto market, there have been a lot of optimistic crypto predictions these days, starting with the price of Bitcoin.
The most important coin in the market is expected to surge this year, and one of the main catalysts is the upcoming halving process that’s scheduled for May.
Tom Lee said that he’s expecting a massive Bitcoin rally in 2020. Fundstrat published the 2020 Crypto outlook report, and there are three main factors that could cause a surge for BTC.
Factors that could trigger a surge for BTC in 2020
Here are the main catalysts that could trigger a surge for Bitcoin this year:
– the upcoming BTC halving event, which will reduce the cryptocurrency’s rate of new supply by 50%
– increasing geopolitical risk
– the 2020 US presidential election
BTC could gain 100% in 2020
Fundstrat also points to Bitcoin’s strong performance in 2019.
“Bitcoin returned 92% in 2019, trouncing all other major asset classes, an impressive return given the significant policy and regulatory headwinds that emerged [during the year] … the Congressional blowback from Facebook’s Libra and the correlated White House bashing of Bitcoin marked the highs for 2019.”
We published our 2020 Crypto outlook and made the full report available for our clients.
– bottom line: financial markets tend to discount 1-3 months, and maybe 6 months (max). So highest probability is halvening not priced in
— Thomas Lee (@fundstrat) January 10, 2020
Analysts also see a few positive convergences that could potentially enhance the economic model of BTC and crypto at large.
“We believe Bitcoin and crypto total return [this year] should exceed that of 2019. In other words, we see a strong probability that Bitcoin gains >100% in 2020.”
Just the other day, we reported that Alex Kruger believes that the BTC halving is not priced in just yet.
Crypto analyst and economist Alex Kruger addresses the debate over Bitcoin’s halving. Past price history links the halving to immediate bullish moves.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.