At the beginning of the current year, the main digital currency was trading at around $7,000, then its value rose sharply above $8,000 and continued to increase.
At first, the growth of the BTC rate was associated with the military conflict of Iran and the USA, now experts say that the spread of the Chinese coronavirus could positively affect the value of the asset. Besides, the explosive growth in the price of the main cryptocurrency of the world may be associated with the possibility of wider implementation and use of cryptocurrencies.
According to analysts trying to explain recent cryptocurrency news, at such rates, Bitcoin was last rising in price in 2012, eight years ago. The positive dynamics of its exchange rate in early 2020 was also reflected in other major cryptocurrencies – in particular, Ethereum (it grew in price by 25% over the same period), and XRP grew by 20%.
However, 2020 has just begun, in front of the cryptocurrency market, there are a lot of key events, the most important of which, of course, is Halving that is expected in May. If in past years many well-known specialists from the world of digital money made big assumptions for the Bitcoin exchange rate, now the situation has changed. Most of the predictions did not come true due to the fact that cryptocurrencies are extremely unpredictable. And yet it will useful to familiarize yourself with the opinion of reputable experts in this field.
Positive predictions for BTC
Confidence in the further growth of cryptocurrencies, including Bitcoin, was expressed by Michael Cohen, managing partner of Quail Creek Ventures investment company, who is engaged in investments in digital assets. According to him, in the near future, widespread utilization of virtual money is expected, which will affect the growth in its price.
On January 13, 2020, the co-founder of Blockstream blockchain company Adam Back wrote on his Twitter that the Bitcoin exchange rate could skyrocket to $100,000 due to potential US dollar inflation. According to the entrepreneur, cryptocurrency will grow 10 times if the US currency depreciates over time by a similar amount.
Bitcoin may crash again
Despite the rapid growth of Bitcoin, not everyone believes in its continued success. Some experts believe that there is a possibility of a new rate collapse, as it was in 2018. This is the opinion of the founder of Signal Profits, Jacob Canfield and trader Peter Brandt – they believe that in the near future Bitcoin will fall in price to $5500- $5000.
Brian Kelly, the co-founder of BK Capital Management, said in an interview with CNBC that investing in Bitcoin in the near future is undesirable. He noted that if Bitcoin did not fall in price, then a sharp increase in its price should not be expected either.
History repeats itself
In 2019, Bitcoin also showed a steady increase in its price. It began in April 2019 after major investments in the cryptocurrency market were made by unknown Asian investors. In the summer of 2019, the situation repeated itself due to news about Facebook’s plans to release its own cryptocurrency Libra – at that time, the Bitcoin exchange rate exceeded $12 000. In the second half of 2019, Bitcoin was rapidly falling in price, dropping below $7,000 in December 2019.