Bitcoin has been dropping on a relatively consistent basis over the past month, and yet 2020 is still the year for mega predictions.
Will Bitcoin Reach Its All-Time High in a Few Months?
The co-founder of Morgan Creek – Jason Williams – is claiming that bitcoin will once again reach its all-time high of $20,000 this coming September. Normally, news like this wouldn’t strike people much, but considering the circumstances the crypto space and markets in general are now facing, this is a very bold prediction.
At press time, bitcoin is selling for roughly $6,700 per unit. September would suggest that in five months, the world’s number one cryptocurrency by market cap would add approximately $13,000 to its overall price. Is that possible?
For the most part, bitcoin still represents a very speculative asset, and many people are unsure of what to make of it. Is it a “safe haven,” or is the asset overhyped?
Marouane Garcon – managing director of crypto-to-crypto platform Amulet – explained in an interview that many people are still in a phase of wanting to try bitcoin out. They’re not sure what it is, and thus see it still as a relatively experimental tool in the world of finance.
I think that people are seeking cover from what they think is going to happen in the traditional markets. The headlines are getting scarier by the day, so people are trying to figure out where can they go for protection. I don’t know if bitcoin is the safest place, but many people are willing to try.
Bitcoin has lost about 40 percent of its value since mid-February. During that time, the asset was trading for over $10,300. Now, it’s going for nearly $4,000 less, though this is an improvement over where it stood in mid-March. At that time, the currency had fallen into the high $3,000 range, making all its gains over the past year temporarily non-existent.
In addition, several people have predicted that 2020 was set to be a year of great strength and stability for assets like bitcoin. Venture capitalist Tim Draper, for example, had long predicted that the currency would reach the six-figure mark in the coming years. He initially predicted a price of about $250,000 would strike in 2022 or 2023, but later brought this figure forward to the present year.
Maybe There’s Hope…
Charles Hoskinson – the co-founder of Ethereum – and Ross Ulbricht of Silk Road fame have also predicted prices of at least $100,000 for BTC in 2020.
The present market conditions make many of these hypotheses very questionable, and while $20,000 is significantly less than the likes of $250K or $100K, one can’t help but raise an eyebrow in doubt. Still, last year saw BTC rise from less than $4,000 in April to over 13,000 in July, so maybe $20K isn’t that far off.