Though Bitcoin is currently below the $10K mark, there is no denying that many are still optimistic about the near future for the cryptocurrency. In fact, it has turned bears into optimists. If you are going to ask someone like Joe Kernen, he predicted that there is the possibility that Bitcoin is going to reach $55,000 by May 2020. This 500% jump is expected because of the next halving.
By May 2020, we can expect Bitcoin rewards for miners to be cut in half. From the current 12.5, it is going to be cut to 6.25. It can reduce the supply of Bitcoin circulating in the market. Kernen predicts that scarcity of the cryptocurrency will push the demand up. He argues that it is a classical market principle that still applies to Bitcoin. This is the same rule that applies with precious metals such as gold and silver.
In 2016, during the last halving, Bitcoin’s price pushed up mainly because of the decrease in the mining reward per block. It then followed Bitcoin reaching its all-time high at near $20K. Kernen isn’t the only one that has this prediction. In fact, Anthony Pompliano, who is Morgan Creek Digital Assets co-founder, thinks that a “continuation of trends we’re already seeing” could even push Bitcoin towards $100K by 2021.
Kernen as Pro-Crypto
Joe Kernen was hailed as a crypto hero when he mentioned that Facebook’s Libra “doesn’t excite me at all”. This statement shows how he believes in Bitcoin. Many argue that unlike cryptocurrencies like Bitcoin, Facebook ‘s Libra, its digital asset, is still centralized in nature. It has companies that can call the shots and could even influence countries.
Kernen mentioned as well that the “first country to buy Bitcoin will force others to play catch up”. Over the past months, there’s an increasing number of financial institutions becoming interested in digital assets. It was followed by regulatory changes.
Many in the crypto market believe that institutional investors could change the game for cryptocurrencies. Their involvement could mean serious money for cryptos which could even trigger FOMO on different investors.
Golden Cross and Bitcoin
Despite the recent 33% drop in Bitcoin’s value, there is a reason for investors to be optimistic. One is that there is a bull indicator if you are going to look at its technical analysis. You have the golden cross. It may even be responsible for Bitcoin’s rally in December last year from around $3,100 to June’s $13,800. Could this actually mean that people should start buying now given all these signs that Bitcoin is expected to go up once again?
In 2017, Bitcoin’s value went up due to a number of reasons. One, you have a lack of regulatory clarity within the niche. And also, you have a bunch of ICOs that have become rampant. But during over the next 12 months, Bitcoin dropped by more than 80%.
But in recent months especially since the start of 2019, Bitcoin has been showing signs of improvement. Though it is still far from its all-time high, 2020’s halvening could be the event that Bitcoin investors are waiting for.