Now that we have completed the year (and the decade), it is now important to take a look at the past price development of Bitcoin in order to get an idea of where it could this year to develop. Clearly it was currencies of a turbulent year for Crypto in General, since Bitcoin and Co were taken much more to the attention of the regulatory authorities. So the rumor mill was tucked in at the waist and there are already a lot of speculation about where Bitcoin is next year is going to go.
Currently, Bitcoin moves to $7,000, and is so already a better Start for the Coin than $4,300 to the beginning of the year 2019. With a view to an ambitious goal such as $20,000, however, there is still a lot of room to the top, before Bitcoin is repeated to the rapid development of the end of 2017.
A statistic that we want to highlight is the recent finding that 64% of the in circulation Bitcoin remained in this year in the same Wallet. That HODL’show, he such a Conviction, is perhaps the most important factor that you should this year take into account. The setting, to save its currency, rather than selling has helped to support the price of Bitcoin. Investors think long-term and will have a permanent positive effect on the Performance of Bitcoin.
First of all, we want to provide a breakdown of the different pressure factors on Bitcoin and its long-term effects. Of course, this is a complex Ecosystem and we can not predict which factors will have the strongest effect, but this is a necessary aspect of this analysis.
For example, there is a growing pressure on the price of Bitcoin, the Bitcoin miners together. If the price of Bitcoin goes down, so does the value of the remuneration that you receive for the support of the network, i.e. the Mining,. If this happens in the long term, the danger is that you leave the network, and thus the Mining of other Bitcoin give up. In addition, can choose the Miner to sell their remuneration to be from the price of the Bitcoins is dependent.
This is basically just a short-lived concern with the price of Bitcoin. The miners are forced to develop a long-term strategy of the Minens, because it is not so easy for you to sell all your Bitcoin and ran off to a different platform. The Break-even price for mining Bitcoin is estimated to be the low for $ 4,000. Since we know this, we can expect an additional pressure, but it is a long-lasting price should be decrease so that it affects the price in a sustainable way.
The overall economy plays for the price of Bitcoin a much larger role than many want to admit. Some would say that Bitcoin is completely currencies, regardless of the development of the US dollar or other major Fiat, while some claim that it has a strong, negative connection with the development of the economy. Since the Federal Reserve and the European Central Bank to print much more money, we can expect a further inflationary pressure on the Fiat currency. This can lead to more investors buying Bitcoin against the Fiat-risk hedge.
In addition, we are in a period of great economic unrest. China and the United States are still in a trade war which has an impact on the world economy. It’s not like to calm down somewhat, but a certain instability of the market still. This uncertainty has historically out seen a positive impact on Bitcoin, but we are not sure what you mean in the future for Bitcoin.
We believe, therefore, that the business climate this year will be more or less stable? With US President Trump’s Impeachment complaint, we are definitely in turbulent times. The markets have developed well, and there have been some positive developments in the United States, so that we can call this at the Moment as “neutral”.
The “halving”, as it is often called, is happening this year and represents a reduction in the remuneration for mining on the Bitcoin Blockchain. Normally, this has a very positive effect on the price of Bitcoin, because the inflation pressure will be in the future lower. Some analysts are talking about the On-Chain-Momentum and the fact that there are several indicators, which show that dealers take an upward position in the case of Bitcoin, to this shift in the dynamics prepare.
In the end, it is easy to rationalize the price movement of an asset and are nevertheless completely wrong. Sometimes, Bitcoin is down because the price has fallen. Bitcoin has proven its Strengths and any guess why it has developed in this direction is completely random.
In spite of all this, we believe, however, that by 2020, has the Chance to be the “year of the crypto-currency”, after the rather neutral Performance from 2019. As Bitcoin has set last year, and again in the scene, there is a Chance that the currency will develop in the future even much better.
Although we do not forecast that we will come in the “$100k by the end of 2020”-Zone, we think that this is the year in which good things for Bitcoin and could happen. The interest in Bitcoin and other institutions is growing and the world seems to be in need of a solution to the many deficiencies that prevail currently in the economic system. With all this in mind, we expect that Bitcoin breaks its previous all-time highs, and by the end of 2020 $ 35,000 to be achieved. We will check this at the end of next year, to see if we were right!