The performance of bitcoin (BTC) has started to surge and some experts believe this to be the rise much like the one that happened in 2017. Some even expect the price to reach as much as $41,000 later in 2020.
This year has been a massive roller coaster. The economic uncertainty that settled in due to the ongoing worldwide novel coronavirus pandemic has shattered the economies as we have known until now. Massive industries all reporting unprecedented losses and countries struggling to open up to get their economies going again. The spikes in unemployment as well as general disarray in financial markets have caused the prices to start jumping around left and right. This is the most noticeable in the crypto market where the overall volatility is much higher than everywhere else.
While fiat currencies like the United States Dollar (USD), Great British Pound (GBP), Japanese Yen (JPY), Russian Rubles (RUB), Euro (EUR), etc. are impacted by the political situation going on inside the regions where they are utilized or produced the most (respectful countries) the cryptocurrencies do not have such affiliations. Bitcoin in particular is extremely libertarian in its price jumps and is absolutely regulated by the market. Although, the fiat currencies like GBP have been suffering greatly during the last couple of months because of the number of coronavirus infected people and social distancing laws that have been enacted to protect the general population from even more widespread infection they still have a backing of the government and central banks which means that there are regulatory bodies trying to not let the currencies slip way too far with stimulus packages, tax exemptions, decrease in interest rates, etc. the cryptocurrencies do not get the same treatment as there are virtually no institutions that have the ability to do it.
At the end of August and the start of September, PlanB, who are the creators of stock-to-flow (S2F) BTC price models have issued a statement on Twitter warning their investors to be patient with the bitcoin pricing as it is supposedly starting to go up to new all-time highs expected to reach as much as $41,000 per BTC at the end of the year. This notion has also been reinforced by some market analysis robots that are showing divergences automatically detected by the prediction systems that the statement may hold true in the long run. However, the problem with cryptocurrencies is that nobody actually knows what is going to happen. For instance, in 2019 there was a notion from people like Paul Chou, who was one of the experts at Goldman Sachs, who believed that big Wall Street companies would become major players in the cryptocurrency market. Everything was set and all of the signs were pointing to Goldman Sachs itself to start opening trading operations. However, this did not come true. The issue is that the Smart Money noticed a decline in the customer interest and thus decided to not approve to buy and hold actual bitcoins in their possession. There were numerous reasons but the market volatility is still one of those.
The previous successes of BTC against all doom-sayers who were sure that the bubble would burst and every bitcoin would lose the value did not come true. On the contrary, we saw one of the biggest price jumps in the history of humanity to the point where it reached $35,000 on some exchanges. The current prediction comes from the fact that bitcoin has been performing for a four months period in exactly the same manner as it has been expected. The bounce happened till $11,000 on Wednesday but this was also more or less within the expectations. BTC has been a bit reluctant to break the $12,000 as support but the charts show that it most definitely will. This can be attributed to the fact that at the end of the year there is a bitcoin halving that is supposed to go down.
$41,000 Price Target
During the last weekend, there has been a much more bullish chart afloat though. The Econometrics produced a price target for BTC to reach as much as $41,000 at the end of the year. This is based on May’s halving as the starting point. The firm has added to their Tweet that the $100,000 should become a reality around mid-April of 2021. The targets have been compiled using the average growth after BTC’s last halving process. However, this goes to show that