What will be the price of Bitcoin later this year? For this question there are dozens of different answers. Some think that the price will rise only slightly, others that it will remain stable, the most optimistic speak of half a million dollars, and pessimists believe that it may sink. That is why, amid so much confusion, the vision of Bloomberg analysts predicting a Bitcoin of US $ 20,000 at the end of the year is interesting.
We are probably going through one of the most interesting periods for the price of Bitcoin. When two important events have combined to affect the development of the crypto market: Bitcoin’s third Halving and the economic crisis caused by the Coronavirus.
Thus, rivers of ink have been spilled to try to explain the effects that the Coronavirus crisis is having on the price of Bitcoin. There are analysts who consider that the pandemic has increased the demand for Bitcoin worldwide. While others argue that the collapse in the economy has damaged, rather than helped, the cryptocurrency’s listing.
But, one event that has had the most influence on the imaginary of the crypto community is Bitcoin’s third Halving. Which occurred a few weeks ago, generating great expectations around a possible increase in the price of the cryptocurrency. Due to a decrease in the rate of expansion of the BTC money supply.
For this reason, in the last days when the Bitcoin price has presented high levels of volatility. The entire crypto community, including Bloomberg, has turned to the task of trying to identify signs that this volatility marks the start of a new big BTC bull rally.
Among those trying to make sense of Bitcoin price development are Bloomberg analysts. Those in the latest Bloomberg Crypto report comment that the cryptocurrency seems to be following the same pattern it had in 2016. Just before the last major bull rally occurred that led Bitcoin to touch $ 20,000 per BTC.
Thus, in 2014 Bitcoin experienced a 60% drop in its price, similar to the 75% decline in 2018. However, two years later, in 2016 the cryptocurrency had recovered the peak reached in 2013 in its price, and headed for the biggest bull rally in its history. So Bloomberg analysts believe that just as in 2016, in 2020 Bitcoin could regain its 2017 peak of $ 20,000 per BTC.
But it is not only this parallelism that underpins Bloomberg’s analysis. Rather, it would also be driven by the massive entry of institutional investors into the crypto market. Thanks to the services offered by the Grayscale investment fund. As Kevin Rooke explained through Twitter:
“Grayscale’s Bitcoin fund has bought 18,910 Bitcoins since Halving. Only 12,337 Bitcoins have been mined since then. Wall Street wants Bitcoin, and they don’t care what Goldman Sachs has to say“
Therefore, in the words of Bloomberg analysts, only something really bad could prevent an increase in the price of Bitcoin this year. A vision that agrees with a good part of the crypto market analysts. And that brings optimism to the crypto world in an era of uncertainty.