Can the price of bitcoin hit $ 14,000 before the end of the year?

By Mickael Pasquier | Mickael Pasquier | 10 Aug 2020

The specialists project considerable growth of BTC and gold towards the end of the year

The last time that Bitcoin (BTC) reached the USD 14,000 level was last year, in a context marked by a tense passage of the commercial relationship between the United States and China. Back then, the fall of the digital yuan was one of the factors driving the main cryptocurrency, which in recent weeks has been experiencing exponential growth from the fragility of the US dollar .

Recently, rumors about the possible monetary policies of the Federal Reserve covered the financial environment of a latent inflationary fear until now . Both gold and BTC have been protagonists in the financial market in recent days, raising their prices in counterpart to the US currency from those of a supposed “projected” inflation of around 2%.

However, analysts warn that short-term profit-taking may yield some drawbacks in the upturn for both assets.

Win Thin , head of global currency strategy at Brown Brothers Harriman, noted that the dollar could fall more sharply towards the end of the current financial quarter and the beginning of the next . According to the specialist, the depreciation of the most powerful currency in global terms is directly related to the inefficiencies of the Donald Trump government in handling the coronavirus pandemic.

"The stars are aligned against the dollar," Thin said in dialogue with CNBC.

The affinity between BTC and the dollar has been on the decline since "Black Thursday" in March, where the spread of the virus brought down the market in just a few hours. In this way, specialists point out that any sign of dollar weakness almost invariably translates into a positive factor for the cryptocurrency .

North American experts suggest, however, that gold will benefit first than BTC , and could hit $ 2,500 per ounce before the end of the year.

The correlation between gold and BTC reached almost 70% at the end of last week. In the event that it continues in the next four months, the experts put all their expectations that the assets will close the year above USD 2,500 and USD 14,000 , respectively.

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Mickael Pasquier
Mickael Pasquier

Interested in the field of cryptocurrency and blockchain

Mickael Pasquier
Mickael Pasquier

Only Crypto

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