The cryptocurrency market is currently experiencing a number of important events related to the pandemic, the economic crisis and its half. The global economy continues to be actively supported by liquidity in order to restore investor confidence in the future.
Coronavirus has changed the market paradigm. Crypto and traditional markets react equally to this event.
What happened to Bitcoin after Halving 2020
Halving plays an important role in the price of bitcoin. Mining is a very competitive market, and miners are forced to sell most of the coins to cover costs. The actions of large mining companies have always put serious pressure on the market.
However, there was a halving on the night of May 11 to 12 on the BTC network and the first cryptocurrency began to depreciate slightly. After that, most cryptocurrencies from the top 10 CoinMarketCap resource capitalization ratings also fell into decay. Only EOS and Tether in a stable coin maintained positive momentum.
Despite this, according to many participants in the crypto community, the event should be the starting point for the growth of the asset. Users explain their point of view with the prospects that halving opened for BTC.
Now traders are focused on the largest quantitative easing program, and investors are striving to keep up with rapid development and uncertainty, but despite such a temporary drop, Bitcoin can still get ahead of the market in 2020.
PlanB, a popular cryptocurrency analyst, one of the most active investors promoting the idea of a positive bitcoin movement against the background of a decrease in mining fees, believes that halving opened up prospects for the asset to grow to $ 100 thousand in 2020.
Is it worth investing in crypto this year?
According to experts, 2020 will become strategically important in the history of cryptocurrencies. It will be a time of formation of public opinion and attitude to the crypto world.
The number of people who invested in cryptocurrency will grow, since for many it was digital coins that became safe havens. People will cease to be afraid and distrustful of investing in crypto assets, and will begin to be interested in what cryptocurrencies are better to buy, where and how to do it better.
Moreover, cryptocurrency is approaching to become the same generally accepted class of assets as gold and other valuable metals, government bonds and securities.
In connection with the latest events of the beginning of the economic crisis, in 2020 experts expect increased interest in digital money even from the state, various state and private organizations. This year, Blockchain-based technologies will reach the public level and become available to a wider public.
But, as the traditional market continues to fill with liquidity, Bitcoin is likely to continue to grow. It is also important to understand that the pandemic problem has not disappeared, and most likely there will be new waves of infection. Liquidity is not eternal, which means that a new market decline is possible.
What cryptocurrency will grow in 2020
According to Toma Lee, the co-founder of Fundstrat Global Advisors, over the course of 2020, the bitcoin rate should rise to $ 40,000. The main reasons for the cryptocurrency appreciation include halving, outbreak of COVID-19, geopolitical unstable situation, overcoming the 200-day moving average.
Tom believes that 2020 will be much more promising than the previous one, in which there were many unpredictable fluctuations in digital currency rates. The entrepreneur noted that the best investments in cryptocurrency 2020 are those that are directed towards bitcoin. Even despite the volatility, the cost of the main cryptocurrency will be 120% higher than the minimum indicator for the year.
Bitcoin rate forecasts
Most analysts agree that cryptocurrency will survive another takeoff in 2020. But the predicted numbers diverge. Someone is convinced that the bitcoin exchange rate will rise to 15-20 thousand dollars, others predict a take-off of up to a million dollars per token.
On average, experts predict a rise in the course, which will last until the beginning of 2021. After this, the expected recession will come, which always follows the peak value after the halving. However, due to the above negative factors, the value of the token after the recession can be significantly lower than the current one. Already, many miners are thinking about at what point it is better to leave the cryptocurrency market in order to stay in the black.
Should investors buy bitcoins now?
Most analysts will say with confidence – yes, buy as soon as possible. Perhaps the rate may increase sharply soon, so if you do not have savings, it makes sense to buy tokens.
Next, you need to wait for the peak value of the exchange rate, analysts predict a peak in the autumn-winter period of 2020. And then it is not so important how much the exchange rate rises – up to $ 30,000 or one million, you will, in any case, remain in the black.