3 factors that will cause the Bitcoin price to grow significantly in 2020.

The new year is a revival of hope in the crypto market. Of course, many analysts give reasons why BTC may be worth many dollars by the end of 2020. But why should this happen? Let’s think about why Bitcoin’s price should be rising at all.

The new year is a revival of hope in the crypto market. Of course, many analysts give reasons why BTC may be worth many dollars by the end of 2020. But why should this happen? Let’s think about why Bitcoin’s price should be rising at all.

Halving

That’s the reason why every discussion about the price of a cryptocurrencies is so heated. Why? Well, the reduction in the supply of new Bitcoins on the market combined with the growing demand must even lead to a price jump. At least until 2017, that’s how it worked. Will it be different now? Probably not, although we have a lot more cryptocurrenciesand tokens in the market today than when the last bubble was bursting. But we can assume that halving will do its job and will even have a psychological effect. People will be more eager to buy BTC, because “previously it grew”.

Geopolitics

A cryptic community is made up of people who do not like politicians, officials and authorities and their main tool – fiat money. But now politics can influence the course of BTC.

Since last Thursday we are really close to a new war in the Middle East. Donald Trump is trying to close a deal with Iran. Interestingly, although as a result of the assassination of the Iranian general, as all the media have been saying for a few days, the share prices have started to fall, and safe havens, i.e. gold, silver, bonds and… well, cryptocurrencies, have strengthened.

“Increased geopolitical risk has made both gold and Bitcoins more expensive, but for various reasons. Gold is bought by investors as a safe haven. Bitcoin is bought by speculators betting that investors will buy it as a safe haven.”

– believes Peter Schiff.

The economy

Today’s economies are beginning to shrink, putting pressure on banks and fiat-based financial systems. The FED is printing more dollars and this is unlikely to change in 2020. The European Central Bank is doing the same.

The European Central Bank is doing the same. The economic pressure is pushing investors towards safe assets. These are bullion, but as you can see, they are slowly becoming cryptic. If inflation hits different currencies harder (e.g. by a jump in oil prices), some of the more aware investors will start buying (or already doing so) digital assets. At some point they will be joined by others, a bit within the so-called sheep’s shoot. In any case, cryptic prices will rise.

Barry Smith

Hi! My name is Barry Smith and I've been interested in the cryptocurrencies and blockchain industry for 4 years. I create crypto-earn.co.uk to share my knowledge with other users and give them the opportunity to make money by investing in bitcoin. Thank you for reading my articles, but remember that these are only my own observations, not investment advice.

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