Since the beginning of 2020, the crypto community has been waiting for the price of Bitcoin to go to the moon. However, with almost half of the year already gone Bitcoin has failed to cross the $10,000 mark sustainably. Does this mean that the Bitcoin dream will not be fulfilled anytime soon?
Bitcoin’s previous price action?
In 2017, Bitcoin experienced the biggest ever price rise to date, moving to up to $20,000 by December. However, the bubble did not last long and the crypto prices entered the ‘Crypto Winter’ phase where prices of several cryptocurrencies went down by as much as 75%. 2019 was relatively quiet for digital currencies and people expected 2020 to bring in a fresh wave of bullish movements in the coin.
The May halving of Bitcoin block mining rewards was also expected to make a huge difference to the price of the premier cryptocurrency. People flocked to websites like https://immediate-bitcoins.com to buy Bitcoins and make a profit. However, the prices have failed to move beyond $10k.
Is there a chance that prices could cross $20k?
Bitcoin would have to double its prices before it reaches the $20k mark. However, it is possible for the currency to make this process. Firstly, Bitcoin is the most dominating digital currency in the world. It is the most expensive as well as the coin with the highest level of acceptance, large user base and the biggest market capitalization. No other cryptocurrency has come even close to Bitcoin in terms of price or market cap. Some of the biggest bulls in the market believe that the overall crypto market is poised to grow but Bitcoin is poised to take control of at least 90% of the market.
China could also play an important role in taking the Bitcoin phenomenon forward. Recently, Chinese investors have shown great interest in digital currencies, specially Bitcoin. As a result of this, China related cryptocurrencies like Tron have already started making gains. Bitcoin will also be supported because of this revolutionary approach.
However, what is expected to make Bitcoin the most dominant force in the crypto world is the currency’s increasing adoption by institutional investors. Bakkt and Fidelity are amongst the chief investment vehicles that they are using in the US to make it big in the industry. Institutional buying is on the rise because of which there are chances that the prices will remain relatively stable and violent price fluctuations will be divided.
This would eventually be helpful for the currency to gain more legitimacy and gain better adoption as well. This could help in improving the price of the currency as demand increase alongside the use cases.
However, there are chances that Bitcoin doesn’t make it to 20k as well. Given the existing price movement of the currency through the year, it seems unlikely for now that Bitcoin would touch $20k. This will most likely be because of lack of innovation on the technology front. Bitcoin may need a big event to help it push to its next goal.