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Bitcoin looks strong in 2020. Can this year be the year when Bitcoin will shoot to new heights? If we look at the trends, we have to say that it looks very good so far.
2020 could be the year of Bitcoin. Many analysts say that market fundaments and technical indicators are preparing for a powerful introduction to the leading cryptocurrency. Here are a few factors that can pave the way for Bitcoin growth.
The obvious one: Halving
Before we look at the other probable reasons for Bitcoin’s growth, let’s look at the biggest – Halving. Yes, 2020 is the year when Bitcoin becomes twice as rare.
Halving is scheduled for May and has historically been preceded by slight growth. However, the previous Halvings brought considerable profits only after Halving. This indicates that Bitcoin will be particularly strong at the end of the year. Halving is the biggest bull event of the year for Bitcoin, but it’s not the only one.
World debt set a new record
Debt (globally) has torn its sack over the past two decades. And they set new records last year. At the end of last year, global debt was estimated at $ 250 trillion, with the US and China in the lead. Such unsustainable debt indicates serious problems with today’s fiat currency system, which lacks effective limits.
However, this debt system creates favorable conditions for Bitcoin. As a deflationary currency, it cannot succumb to the use and abuse of fiat and its tendency to debt. The deeper we fall into this hole, the better the conditions for Bitcoin are likely to arise.
A ban on cash will be more common
Part of Bitcoin’s attraction is the fact that it is degradable. It is often called “digital currency”. Bitcoin offers us a decentralized alternative. With the momentary restrictions imposed on payment transactions, we can see a significant transition to Bitcoin and other cryptocurrencies.
One of the biggest examples is Lebanon, where the state of emergency has led to the imposition of cash withdrawal limits. And as an effective form of government control, they increasingly use cash – and are looking for new ways to control personal finances. As BeInCrypto mentioned earlier, banks in Lebanon are a flash of the future that we can avoid with Bitcoin.
Banks still abuse their power
Last year saw a significant increase in the amount of money that central banks pump into the economy to keep it running. Just last month, the NY Federal Reserve released $ 57.7 billion on January 4, and another $ 55.3 billion on January 24. That’s more than $ 100 billion in less than a month because of the “calming of the stock exchanges.”
However, everything is lost compared to what the People’s Bank of China recently did. In response to fear of coronavirus, the bank poured 1.2 trillion yuan ($ 173.8 billion) into the economy to mitigate the effects of coronavir. This is more than the entire market capitalization of Bitcoin.
These fleeting measures are also the reason why Bitcoin’s argument is now more evident than it has ever been and embodies its future in 2020 well.
The bottom of Bitcoin is based on historical trends
Historically, Bitcoin has always found its bottom around the 3rd year of every four-year Halving cycle. In the first four-year cycle it rose by some 13.378%. In the second cycle it was an increase of 12.160%. The question is, how much will this cycle be?
The historical foundation thus creates a strong basis for the bull’s momentum to plunge forward. If we can take the past as an indication of what to expect, it looks like bear winter 2018/19 will soon be no more than just a bad memory
Summary
In today’s article, we have shown the possible reasons for the significant growth of Bitcoin. Do you agree with them? Do you think this year will be as crucial as Halving for Bitcoin?
