The script will repeat itself. When the price of bitcoin exceeds $ 40K
The fourth quarter is historically considered to be strong for cryptocurrencies. It often accounts for the largest growth in bitcoin. In October – December 2015, it almost doubled in price – from $ 237 to $ 465. In 2016, there was also a double increase – from $ 600 to $ 1200. But the most impressive rally came in the last three months of 2017.
On October 1, 2017, the average market price of bitcoin was $ 4336, and after 2.5 months, it reached a record $ 20,000. Three years ago, BTC cost $ 5,780, now – $ 13,800. thousand
The current economy looks even more promising than three years ago, as there are fundamental factors for continued growth in asset prices. For example, in the second half of 2020, public companies began to actively invest in bitcoin. The $ 425 million that the investment program MicroStrategy has invested in BTC has already given him almost $ 100 million in "paper profits".
Companies have begun to see cryptocurrency as a defensive asset in the midst of the COVID-19 crisis. Bitcoin has an advantage over fiat currencies due to its limited emissions. Thanks to this, prices rose as central banks began to actively apply quantitative easing and national currencies began to depreciate.
Now there is every prospect of the rapid growth of bitcoin, says Michael Ross-Johnson, CEO of cryptocurrency p2p platform Chatex. But comparing the current year with the dynamics in 2017 is not worth it – yet 2020 is very different from all the previous ones, he warned.
"The stronger the negative trends in the global economy and the deeper the recession in developed countries, the stronger Bitcoin will grow, as there are almost no assets left that have no prospect of a fall. By the end of the year, the coin may well overcome $ 20,000, and over the next year's horizon – $ 40-45,000, ”Ross-Johnson predicted.
Sergey Zhdanov, CEO of the EXMO stock exchange, also stated that it is not entirely correct to compare the current situation with 2017. Three years ago, the main market participants were private traders – crypto enthusiasts, at the end of the year joined by speculators who accelerated the price of bitcoin , he explained.
At that time, the main driving force for BTC's growth was the FOMO effect, the syndrome of lost profits, in other words greed and fear of missing out on surplus profits. Now the cryptocurrency market has changed. It has matured and meets the criteria of the traditional market for financial assets in almost everything. The expert named several of them:
“All of these factors contributed to the growth of liquidity in the market, and the higher the liquidity, the lower the volatility. In 2017, the market was very volatile. "Today we will not see this anymore," Zhdanov said.
External factors will largely determine the price of bitcoin: the development of the second wave of the pandemic and the incentive program to combat it, as well as the US presidential election. According to the expert, all this will have a positive effect on the value of the first cryptocurrency – investors leave risky assets and look for an alternative to them.
“If we are talking about specific price points, the renewal of the historical maximum should not be expected until the end of the year. This is likely to be an achievement, such as $ 14,000 or $ 16,000, followed by corrections, but while maintaining a positive upward trend, ”Zhdanov warned.
Earlier, the well-known trader Ton Weiss predicted that the bitcoin price would reach $ 150,000. According to him, this will happen before the next halving, which will take place in 2024. The previous reduction in the miner's reward for breaking the block occurred in May this year.
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