5 reasons why 2020 will be the year of Bitcoin
5 reasons why 2020 will be the year of Bitcoin

By Roberto D. | CryptoFarm | 12 Mar 2020


Fundstrat's Tom Lee was one of the protagonists of the Blockchain Economy 2020 event in Istanbul, Turkey.
 Lee kept his argument, which lasted about half an hour, on the second day of the event.

The American analyst opened his speech starting from the popular comparison between Blockchain and the Internet:

"The most important generational change in the next twenty years will revolve around the financial sector revolution [...] And the most important of these technologies will be blockchain and cryptocurrencies."

Lee believes 2020 will be a great year for Bitcoin's price.
During his speech, he repeatedly said that the crypto community should be very optimistic in 2020, "given that we are certainly at the beginning of a bull market at the moment".

He then added:

"Bitcoin is the best-performing asset of 2019. It has beaten the return of the S&P 500, which has been the best in nearly 25 years."

The stock market in the United States has experienced a record year, yet Bitcoin has tripled that return.
As if that wasn't enough, 2019 was the fourth worst year in Bitcoin history.
Lee then listed five reasons why Bitcoin would be ready to be the star of the bull market in 2020.

 

US presidential 2020

According to Lee, American politics "killed" Bitcoin in 2019, given that 2020 is the year of the presidential race for the United States, which will shift the attention of politicians elsewhere (on the Presidential elections) and this will favor the cryptocurrency market.

The halving

The factor that will most affect Bitcoin's price is halving:

"I know there are controversies: people are wondering if Bitcoin's halving will affect BTC's price. We think it will have a significant effect."

Through one of the slides of his presentation, Lee noted that the demand for Bitcoin in 2020 will probably be higher than last year, while the supply will decrease due to the halving.
This imbalance between supply and demand caused by halving could result in an increase of nearly $ 100 billion in the value of the Bitcoin network.

"At the moment, the price of Bitcoin is around $ 10,000 and if halving follows the example of the other halves, it could be said that there is a great probability that Bitcoin will reach an all-time high this year."

N.B. In my opinion this is the most plausible reason why Bitcoin will see the price rise.

US-Iranian geopolitical tensions

2020 started with the dispute between the United States and Iran, which will affect the Bitcoin price for the rest of the year.
Geopolitical risks in fact increase the demand for safe haven assets like gold (and also Bitcoin).

200-day moving average

In January, Bitcoin returned to above its 200-day moving average.

"When an asset is traded above its 200-day moving average, it is considered to be in an uptrend.
This is especially true of Bitcoin. The numbers confirm that the trend is very similar to 2012 ".

I think there is also the possibility that Bitcoin could reach around $ 30,000 this year. "

Spread of Coronavirus

In line with nearly half of the cryptocurrency industry, Lee also believes that "the risk of a pandemic like coronavirus is increasing the demand for Bitcoin and other safe haven assets."

 

Do you think Lee's predictions are correct? Feel free to express your opinion in the comments maybe we create a constructive discussion that can only help everyone.
As far as I'm concerned I don't agree on all five points listed by Lee but at least on three of them yes, first of all halving.

Thanks for your time and see you soon!

 


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Roberto D.
Roberto D.

Born in Italy, I live in Italy, passionate about cryptocurrencies since I discovered ethereum in 2015


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