Bitcoin has taken another turn for the worse and is presently trading at approximately $6,160 at the time of writing.
Bitcoin May Not Have a Good Year in 2020
Both crypto ad stocks have fallen further after U.S. President Donald Trump warned that the first two weeks of April could be very difficult for Americans, bringing more coronavirus-related deaths and further damage to the country’s financial and economic infrastructures.
But for the most part, this is still short-term damage. Everything is likely to recover at some point or another. The virus will dissipate, users will recover, and the financial markets will potentially be stronger than ever. The long-term damage of the present situation has taken on a different look and meaning.
According to the latest data, the chances of bitcoin reaching its all-time high of $20,000 this year – like it did in 2017 – is around four percent. In other words, nobody’s giving bitcoin a snowball’s chance in hell of spiking much in the remaining eight months of 2020. According to analysts, the problems stirred by the coronavirus and the global panic we’ve been witnessing since late February have taken a massive toll on crypto, and it may not come back for some time.
This is disappointing when one considers just how many over the top price predictions there were leading up to the new year. Figures like Tim Draper, for example, had long been swearing that bitcoin would potentially reach $250,000 per unit by the time 2022 or 2023 came about. He later swung in and changed this prediction, bringing it back a few years to 2020.
Others, like Ross Ulbricht of Silk Road fame and Charles Hoskinson – the co-founder of Ethereum – all swore up and down that bitcoin would strike six-figure territory of $100,000 or more sometime this year.
Perhaps the biggest prediction came by way of antivirus mogul John McAfee, who long predicted that bitcoin would reach a price of $1 million by the end of the year. McAfee later went back on this prediction, swearing that he was never serious about the numbers and only concerned about getting people involved in the crypto industry to boost its legitimacy.
The Only Way to Fix Things…
Regardless, the odds look very different for bitcoin now than from how they appeared in February when the asset was trading for over $10,300.
Analysts say the only way for bitcoin to spike beyond measure sometime this year will be if everyone pooled together to put vast amounts of money into the crypto space, though we probably shouldn’t hold our breath for this. With money being as tight as it is, many have shown a willingness to sell their assets and avoid speculative trading in the hopes of retaining cold hard cash, which is king in times of economic strife.