It is safe to say 2018 was not the year for Bitcoin as the world’s leading cryptocurrency lost over 80 percent of its market value. The price of BTC plunged below close to the $3,000 mark, from a high of $20,000. However, the rate could increase over the next few months and year.
The bear market could be over, and Bitcoin could reach a new high by 2020
Earlier this month, the price of BTC surged past its 200-day moving average to record a gain of $1,000 within a few hours. The increase in price saw Bitcoin reach the $5,000 mark, with the cryptocurrency community optimistic that the bear market was over.
There are many reasons that lead people to assume that the bear market was over. The first is the fact that the Bitcoin halving event is set to take place next year. This takes place once in four years, and it involves the reduction of mining reward by half.
Historically, the price of Bitcoin usually increases before the halving event and immediately afterward. The halving in 2016 saw Bitcoin embark on a Bull Run the following year. There is optimism that the Bull Run will start this year, with the bear market lasting for over 16 months.
Wall Street leading cryptocurrency analysis firm, Fundstrat Global Advisors is one of the companies that the Bitcoin bear market is over, and the price could surge this year. If the crypto space could build on its momentum, then the BTC price could be looking to surpass the $10,000 by the end of the year.
If it achieves the $10,000 mark this year, then it is on its way to reaching a new all-time high next year. While it is hard to predict the Bitcoin price next year, the halving will lead to more scarcity of the coin, and the increase in demand could shoot up the price.
Another factor that is playing in favor of a price hike this year and next is the increased interest in Bitcoin. According to data from Google Trends, the number of people interested in Bitcoin and researching the cryptocurrency has doubled over the past few weeks.
The cryptocurrency has been brought to the spotlight by the regulatory attention it is getting from the United States SEC and other regulatory bodies across the globe. As a result of this, more people are interested in learning about it and possibly venturing into the crypto space.
In addition to this, famous cryptocurrency market experts like Thomas Lee, Brian Kelly, Ryan Selkis, and others are optimistic that the Bull Run is coming soon. According to Ryan Selkis, the CEO of Messari, the Bitcoin market would experience a massive influx of cash over the next decades as enormous wealth is transferred to the younger generation who seem to have more belief in cryptocurrencies than the older generation. He believes that this could result in BTC price reaching the $50,000 mark in the future.
While it is difficult to predict the price of Bitcoin by the end of the year or next year due to different market conditions, it is expected to surpass the $10,000 mark this year if the current momentum is sustained and built upon.
There's a $30 trillion "great wealth transfer" expected in the next 20+ years (millennials inheriting money from their parents). If 1% of that goes into cryptocurrencies, crypto will be a multi-trillion dollar asset class. That's the conservative case for $50k+ bitcoin.