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What the rest of the year could hold for bitcoin

What the rest of the year could hold for bitcoin

Quick take

2 minute read

  • At the start of 2020, the leading cryptocurrency started off just above the $7000 key resistance level and over the course of the year, rounds of volatility have attacked bitcoin either in a positive way or a negative way. 
  • Currently priced at the $10,500 mark at the time of writing, it’s quite difficult to estimate where bitcoin will be by the end of the year.

At the start of 2020, the leading cryptocurrency started off just above the $7000 key resistance level and over the course of the year, rounds of volatility have attacked bitcoin either in a positive way or a negative way. Currently priced at the $10,500 mark at the time of writing, it’s quite difficult to estimate where bitcoin will be by the end of the year.

With coronavirus having a big impact on the world's economies and general day-to-day business, it was always going to be a hectic year for the flagship coin. The token ended up going above the $12,000 level in the middle of August after getting through the uncertainty of the pandemic and the crisis that it consumed.

But as we get to the end of the year, many people are wondering where the leading cryptocurrency will end up. Will we end up on a high note and be able to maintain the $10,000 price mark or will it sink into four-figure territory.

What are the key triggers that are pushing the bitcoin price?

When the traditional market goes through significant movements, the bitcoin price often follows suit. According to a recent newsletter from Glassnode, “throughout 2020, we have consistently seen a strong correlation between crypto markets and traditional financial markets, and the crypto market's response to the 2.2% drop in Dow Jones futures this morning has reaffirmed this correlation.”

A commodity strategist at Bloomberg, Mike McGlone believes that movements in the crypto space usually don’t have a big impact on the equity prices however, he goes on to add that if the stock market rolls over, it could encourage more stimulus and therefore support for bitcoin.

From here, bitcoin can go in numerous different directions. As the fourth quarter of the year starts, the community will be eagerly anticipating what will happen for the leading cryptocurrency as we go into November, December, and eventually 2021.

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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