4 factors driving the price of BTC 2020
The year 2020 is merely just beginning and it looks like all eyes are still on Bitcoin. The third Bitcoin Halving event in history will happen around May. The block reward dropped from 12.5 to 6.25 BTC would have a significant impact on Bitcoin price.
However, some people still think that if the Halving happens and Bitcoin increases in price, isn’t it too easy to “game”?
Direct Bitcoin Halving, which immediately raises the worth of Bitcoin or not, isn’t the entire story, consistent with the author . There are many other factors which will combine with Bitcoin Halving to make the right conditions for Bitcoin to interrupt the old peak and grow strongly in 2020.
The combination of the subsequent four factors is that the drive for the cryptocurrency market this year.
- Global political instability
2020 has been considered a particularly volatile year politically at the global level.
On January 2, 2020, Donald Trump ordered the US Army to assassinate General Soleimani of Iran. This request led to the death of Iranian General Soleimani near Badgad, Iraq.
Soleimani’s death has made Iran outraged, and US-Iran political tensions have escalated.
Bitcoin price also changes according to the political situation at this time. As soon as the US attack took place, the Bitcoin price on Jan. 4 rose rapidly from $ 6,800 to the previously lost $ 7,300.
This political upheaval confirmed that Bitcoin is now recognized worldwide as a store of value on par with gold.
Most worrying, the US-Iran situation increasingly bogged down, suspicion of a real war beginning to spread.
After the assassination of General Soleimani, Tehran replied that Iran would take revenge with military means, target military positions, … and it would be devastating.
The US — Iran continued to declare mutual reciprocal options, contributing to further tensions in the Middle East.
The day after Soleimani’s funeral, the Bitcoin price quickly rose $ 500, breaking the psychological threshold of 8,000 within hours.
At the same time, the search volume for the keyword “Bitcoin Iran” increased by 4,450%. The phrase “Bitcoin” has also seen a significant increase in searches globally. It hit an absolute score of 100 on January 8, 2020, the highest level since 40 weeks earlier.
In addition to the US-Iran tensions, there are still other political uncertainties this year:
China — United States trade war. Even though the war has been eased after the first signing of the deal, it still needs to be watched closely as unexpected changes may come.
The US presidential election in late 2020 will affect the investment climate and financial markets. The GAFA group is likely to be the most affected.
The continuation of Brexit negotiations between the UK and the European Union and then the post-Brexit period will have an impact on the economies of the European Union member states.
The North Korean situation, may continue to provoke towards Japan and the United States in the coming months.
….
The more volatile the conditions are for Bitcoin, which is increasingly seen by the world as a store of value.
2. Global economic instability
The last global economic crisis occurred in 2008. Since 2009, not a year has passed without economists declaring that the next economic crisis will break out.
Before the 2016 Donald Trump election as President of the United States, the US economy appeared to be growing hot.
Many economists have urged Donald Trump to slow down to avoid a major economic crisis.
Keeping his point of view, Donald Trump decided to ignore these comments and make the economic engine even faster with increasing interest rate cuts and increased printing of money.
The results of these measures have surprised many people. American businesses quickly adapt and eventually increase productivity, allowing the economy to undergo a phase of rise it has not seen in a very long time.
Donald Trump’s great economic results have also benefited the European Union countries.
However, this positive situation may not last long and there are signs that it will be impossible to pump money into the economy to avoid the next crisis.
The Chinese economic slowdown is a first and foremost warning.
In the coming months, it is likely that the situation will impact other major economies in the world in a similar way. The next major economic crisis is sure to happen sooner or later, and it could as early as 2020.
Such a global economic crisis will see more people turn to store of value such as gold and now Bitcoin.
3. Bitcoin Halving in May 2020
Bitcoin blockchain will reduce block reward at every 210,000 block. This event will take place automatically according to the current mining speed. Expected, the third Bitcoin halving event will happen on May 13, 2020.
Bitcoin miners’ reward will be reduced from 12.5 BTC to 6.25 BTC. This will help to reduce the number of new bitcoins created.
The history of two Halving in 2012 and 2016 shows that Bitcoin price responded strongly and positively to the event. If Bitcoin’s price follows an identical or softer path, then Bitcoin’s price ending 2020 at $ 50,000 is understandable.
4. Bitcoin hash rate peaked at 120 TH / s
Hash rate is a measure of the miners’ mining power on the Bitcoin network. The higher the hash rate, the more secure Bitcoin’s network is, and theash rate can be seen as an indicator of the network’s strength and future prices. Bitcoin history.
In early 2020, Bitcoin’s hash rate set a new record at 120 TH / s.
Conclude
No one can see the future. To predict what will happen in the future, we can only rely on what has been proven in the present. Above are four factors contributing to Bitcoin’s growth in 2020.
The combination of four factors will create perfect conditions for a bull market in the next few months. Such a bull market would allow Bitcoin to break the old peak of 20,000 by the end of 2017.
