Bitcoin has had a rough year thus far, but now the currency is showing strong signs of recovery, and many enthusiasts and traders believe this year could wind up becoming the new “2017.”
Bitcoin Could Reach Its All-Time High Again
As we all remember, 2017 is arguably bitcoin’s best year in the record books. The currency struck new territory and hit nearly $20,000 to reach an all-time high. Prior to that, the year was marked by consistent gains and bullish behavior that saw the asset gaining thousands.
Many are wondering if that behavior is about to repeat during the remaining seven months of 2020. UBS chief economist Paul Donavan explains that he thinks bitcoin could hit a new record given how uncertain everything is. He says analysts and traders are doing their best to make sense of everything, and in the middle of it all, bitcoin could find itself on top.
Economists are dealing with three levels of uncertainty. Uncertainty about the virus. Uncertainty about the policy response. Uncertainty about the economic response to the virus and to policy. Changes in any of those change economic outcomes.
Mati Greenspan – founder of Quantum Economics – is quite confident in BTC. He says that many people have begun putting money into bitcoin and crypto over the past several weeks in response to further COVID-19 fear, and that despite the recent sell-off, bitcoin is indeed poised for a major comeback in the coming weeks, especially with the highly anticipated halving set to occur next month.
Bitcoin has been the best performing asset by far over the last year and over the last decade. With all the money being injected into the system at this time and the upcoming halving, I don’t see any reason it wouldn’t continue to outperform.
Danny Scott – chief executive of the Isle of Man’s Coin Corner – believes that the currency will have no problem reaching its all-time high of $20,000 again in the coming months. He states:
The current unexpected global crisis and a number of notable events in bitcoin’s pipeline over the next nine months is causing speculation throughout the industry that another bull run is on the horizon and I believe that we can only expect the price of bitcoin to continue in the direction that everything is currently pointing potentially towards that $20,000 figure and beyond.
Bitcoin isn’t the only asset that’s beginning to recover from recent losses. Stocks have also gained their recent losses back, while oil has shown a serious recovery over the past two days despite a record-setting crash that occurred on Monday.
Things Will Get Serious
Marcus Swanepoel – chief executive of Luno – states:
With the levels of quantitative easing coming into the markets, we would hope to see a steady build in the price of bitcoin to the end of the year.