2020 has already become a great year for bitcoin. Since January 1, the first cryptocurrency has grown from $ 7,200 to $ 9,800. What is the reason for waiting for new records next year?
The US-Iran conflict
In January, the price for bitcoin jumped sharply against the backdrop of the US-Iran conflict. The United States made a rocket attack at Baghdad airport, killing Qasem Soleimani, commander of a special squad in the Islamic Revolutionary Corps for overseas operations. Another victim was the deputy head of the Shia militia Abu Mahdi al-Muhandis. After Soleimani’s death, Iran’s Supreme Leader Ali Khamenei has vowed revenge, in response to it the US President Donald Trump also threatened force if Iran takes reprisals. Later, Iran launched more than ten ballistic missiles at the US Armed Forces in Iraq.
Tensions in the East were not the only reason why bitcoin went up. Later the whole world started talking about the coronavirus epidemic — and both Chinese markets and many other stock exchanges were affected. In such circumstances, investors always turn to protective assets — and lately they have been talking about bitcoin.
The advantage of Bitcoin is that there are currently no assets in the world with similar levels of liquidity, assets that can be easily bought or sold in any economic situation, regardless of regional rules of currency and customs control.
Global economic slowdown
Another positive feature of Bitcoin is that it will suffer in no way from world regulators’ attempts to counteract the global economic downturn. According to preliminary data, the new pneumonia virus is going to slow the growth rate of China in the first quarter of 2020 from 6% to 3.8%. The global economic downturn can amount to 1.5-2%. In such circumstances, central banks will be forced to return to low interest rate policies, which will inevitably lead to the devaluation of traditional currencies. In such a scenario, those assets that are not exposed to inflation will look better than others. Bitcoin, which has a non-inflationary nature and limited emission, is among them.
bitcoin halving 2020
In addition, bitcoin is expected to halve in May. the reward for the found block will be reduced from 12.5 to 6.25 BTC. In total, there have been two halving events in Bitcoin history — in 2012 and 2016. Both times after the award went down, a strong bullish trend began.
According to co-founder of the Kenetic Capital Venture Fund Jehan Chu, the expected halving will become one of the drivers of Bitcoin growth in the near future.
“Halving, stock market fluctuations and the recent rise caused by fears of a pandemic are another reminder that the first cryptocurrency is a much less risky asset and offers potentially huge profits. Bitcoin is ready to soar up to $ 15,000, this will happen by mid-2020. ” Jehan Chu said.