Bitcoin

Is Bitcoin Still Expected To Be $20,000 At The End Of The Year?


$20,000 will become a realistic price target

A few days after the frustrating crash, Bitcoin had an incredible rebound last weekend, soaring 42%. The BTC rose from $7,500 and briefly touched $10,500. At the time of writing, Bitcoin was reverted to around $9,300, but within these days, market sentiment was restored.

It seems likely that Bitcoin will follow the rebound path at the end of last year, and $20,000 will become a realistic price target. Several favorable conditions may help achieve this goal.

BTC’s current dominance (market share) is 68%, which is lower than the recent peak of 71%. Bitcoin is certainly dominant among many smaller altcoins, and only a handful of leading cryptocurrencies with sufficient liquidity can compete with Bitcoin. However, compared with the altcoin, BTC has higher growth potential and has become one of the price leaders. Bitcoin is expected to rise to more than 90% of the dominant position, which is its long-term position on the altcoin. With the support of stable currency inflows, the top cryptocurrency remains the most liquid asset. Market-driven growth may continue to attract traders.

Driven by the activities of OKEx, Firecoin and other exchanges, Chinese traders have been the dominant force in bitcoin price discovery for the past few months. But now, the interest in trading BTC may accelerate further. It is expected that legislation will be enhanced through encryption-friendly and blockchain around January 2020, which means more confidence in growth.

Bakkt will open its bitcoin options trading market on December 9. Such derivatives may generate more trading volume, which will increase the continued growth of BTC contracts traded on exchanges. This also means having the incentive to swing the BTC price in a certain direction. There are enough “whales” that may affect the cryptocurrency to cryptocurrency transactions, which in turn affects the price of Bakkt. Bitcoin futures options will create a market that can offset BTC price volatility and provide a hedge against risk. The existence of futures and options may attract institutional investors to invest in bitcoin without having to worry about volatility because they can hedge risk.

Now in October, Bitcoin has not yet shown whether it has the ability to create a “Halloween Party.” Currently, BTC will have to retain a period of trust. From a longer-term perspective, Bitcoin has room to rise before the block rewards are halved. But after the BTC price is once again “flat”, the last quarter of 2019 may become more dramatic.