The lingering expectation of a rise in Bitcoin prices is sometimes more painful than a fall in prices. All of 2019 was marked by a strange growth. Price charts showed a good picture, but did not reach the desired indicators. Returning to past ATHs was far from the goal. In 2020, the market looks fresher. Where will the main cryptocurrency lead investors and traders in 2020?
Growth of Digital Gold in 2020
There are several factors that are typical only for 2020. In addition to classic triggers, in the near future several others can work:
- Halving. Every four years, the rewards that miners receive for adding blocks to the network are reduced. This year it will be 6.25 BTC. Before the first halving in the history of bitcoin, this figure amounted to 50 BTC.
- Coronavirus. Prices for gold and RMB are one of the influencing factors for BTC. If the epidemic of a new disease gets out of hand, gold mining in China may drop sharply, and the yuan will lose ground. A similar story was in the summer of 2019. That time, against the background of a short-term drawdown of the renminbi and a rise in the price of yellow metal, Bitcoin significantly increased in price.
In addition to unique factors, there are a couple of hackneyed but noteworthy circumstances:
- Inconsistency of the flagship price to trading volumes. The imbalance between the popularity of bitcoin will sooner or later be resolved.
- Growing confidence in blockchain technology. More and more experts are proving that the new technology can be effectively applied in many areas of human life.
A successful combination of such factors gives hope for good prospects for bitcoin.
Cryptocurrency Market Prospects
In 2020 and beyond, BTC will remain the flagship. From year to year the market is filled with substitutes for bitcoin, but only projects with a serious technical and user base pass the test of time. The most anticipated event among users is the fall in the BTC dominance below 50%. This will allow to reverse the sad history of altcoins.
In 2020-2021, legislative regulators of cryptocurrencies in many advanced economies of the world will begin to function. Skeptics are afraid of regulation, but it can have a diametrically opposite effect. Legal and transparent crypto is interesting for large actors and governments.
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