Epidemic the pusher
Although we can say that the Bitcoin bull market is due to the uncertainties of economies, the ongoing coronavirus disease (COVID-19) is clearly the intangible pusher that skyrocketed Bitcoin price.
As the disease spreads rapidly across the world, market panic increases as well. This spurred Bitcoin price after a quiet period of four months. It has now exceeded the symbolic $10,000 mark.
Insiders believe, the seriousness of COVID-19 and the absence of regulations are the factors that have prompted investors to look for risk-averse alternatives (Cryptocurrencies are an alternative). With more and more risk-averse funds being injected, the future is positive and bright for cryptocurrencies.
Halving of mining rewards
Going into 2020, mining rewards of Bitcoin will be halved in May due to its issuance mechanism. This situation has happened twice in the past; the first in 2012 where the mining rewards were halved from 50 BTC to 25 BTC (Highest price increase was 1200%), and the second in 2016 where the mining rewards were halved to 12.5 BTC (Highest price increase was over 2200% in the 18 months after the second halving).
Analysts think that although Bitcoin mining will be reduced after the halving of its rewards, the situation will benefit Bitcoin price instead. Furthermore, with the development of the epidemic, Bitcoin price’s trend will definitely be affected. It is expected to soar, to be precise. Hence, investors all hope to take advantage of opportunities in the bull market caused by Bitcoin halving.
Store of value
On the other hand, despite being dubbed the New Gold, Bitcoin only started to break records in 2019. Members of the United States Congress have described Bitcoin as a highly valuable asset since last year and could eventually threaten the United States Dollar’s status as global reserve currency.
As its properties of digital gold and safe haven assets receive more recognition, coupled with sharp increases in global uncertainties and in some risk-averse funds, Bitcoin price will continue to rise. Lamoureux & Co.’s President Yves Lamoureux too expressed that Bitcoin price could hit $12,000 this year.
Significant development can be anticipated in Bitcoin in 2020. With the boost of multiple beneficial factors, the world’s largest cryptocurrency will have a lot of room to grow. Having said that, regulations relating to cryptocurrencies and instabilities of international situations are capable of affecting Bitcoin price.