Could the bitcoin price be set for big gains in 2020?
The leading cryptocurrency suffered significant losses this week, falling more than 5% and narrowly holding above $8,000 levels. But despite the recent drop, experts predict record highs for Bitcoin in 2020.
Bitcoin (USD) opened at over $8500 on Monday, only for the world’s leading cryptocurrency to nosedive more than $400 to trade at $8,098 as of 16:30 GMT on Wednesday.
The cryptocurrency managed to avoid falling under $8,000, a level it briefly dipped below at the end of September. But despite Bitcoin’s recent decline experts predict record highs for the coin in 2020.
Bitcoin sees steady gains throughout 2019
It is worth noting that Bitcoin has gained more than $4400 since the start of the year, representing a 120% increase on a year-to-date basis. However, it still has a very long way to go for it to return to its record high of close to $20,000 at the end of 2017.
‘The volatility of cryptocurrencies is what makes them excellent conduits of growth for traders, investors and growing businesses,’ Daniele Mensi, CEO of digital exchange group Nexthash, told The Independent.
‘What is important to remember is that bitcoin is still up around 115% this year, so its short-term peaks and troughs are necessary to facilitate longer-term growth across the currency.’
Bitcoin could see significant gains in 2020, experts say
Several proponents of the cryptocurrency, including commodity trader Peter Brandt and cyber security developer John McAfee, believe that the coin could see significant growth over the course of next year.
‘Ignore this drop in bitcoin’s price. I am firmly with Peter Brandt in his medium term $50k price prediction,’ McAfee tweeted.
‘I am also firm on my $1 [million] price by the end of 2020. Stop wringing your hands!’
Bitcoin halving expected in May 2020
A key event that will likely drive up the price of the cryptocurrency in 2020 is the next Bitcoin halving. This event slashes the reward for mining new blocks by half, meaning miners receive 50% fewer bitcoins for verifying transactions.
The next Bitcoin halving is expected to occur in May 2020.
Bitcoin halvings are important events for traders because they reduce the number of new bitcoins being generated by the network. This limits the supply of new coins, so prices could rise if demand remains strong.
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