фото показано с : beincrypto.com

Bitcoin is looking strong thus far in 2020. Could this be the year we explode past new highs? According to trends, it’s looking increasingly likely.

2020 just may be Bitcoin’s year. Many analysts have been saying that market fundamentals and technical indicators are lining up for a strong performance for the leading cryptocurrency. Here are a few factors that may end up creating a perfect storm for Bitcoin’s rise.

Before we jump into the other possible catalysts for Bitcoin’s rise in 2020, let’s talk about the elephant in the room: the halving. Yes, this is the year that Bitcoin will finally become twice as scarce.

Bitcoin’s halving is set to take place in May and historically has been preceded by an uptick in price. However, most prior halvings have seen more considerable gains after the halving event. This seems to indicate that Bitcoin will close this year out especially strong.

The halving remains the single most bullish event for Bitcoin this year, but it is not the only one.

Debts globally have exploded in the last two decades, and last year it topped all previous records. By the end of 2019, global debt was estimated to be around $250 trillion, led by the United States and China. Such unsustainable levels indicate deep problems with today’s fiat system. It effectively has no limits.

Our runaway debt system, however, also makes a clear case for Bitcoin. As a deflationary currency, it can’t succumb to the uses and abuses of fiat and its tendency towards debt-financing. The deeper we go into this debt-ridden hole, the clearer the case for Bitcoin becomes.

Part of the appeal of Bitcoin is that it is fungible. Often called “digital cash,” Bitcoin provides us with a decentralized alternative. With the recent restrictions placed on cash transactions, we could see a significant transition towards Bitcoin and other cryptocurrencies.

One of the most glaring examples is Lebanon, where the state of emergency there has caused limits on cash withdrawals. [Al-Jazeera] In what is effectively a form of control, governments globally are becoming more suspicious of cash in general—and, in turn, seek to control private wallets. As BeInCrypto reported recently, bank runs in Lebanon are a glimpse at a future we can avoid through Bitcoin.

The past year has seen a marked increase in the amount of money central banks are pumping into the economy to keep it afloat. In January alone, the NY Federal Reserve has injected $57.7B on January 4th and another $55.3 billion on January 24th. That’s over $100 billion in under a month to “calm markets.”

However, that all pales in comparison to what the People’s Bank of China recently did. In response to coronavirus worries, the bank printed some 1.2 trillion yuan ($173.8B) to ease economic woes. That’s more than the entire market capitalization of Bitcoin.

The runaway policies of central banking is yet another reason why Bitcoin’s case is now more obvious than ever and bodes well for its future in 2020.

Historically, Bitcoin has found its bottom around the third year of every four-year halving cycle. In the first 4-year cycle in the asset’s history, it rose some 13,378%. The second cycle saw a rise of 12,160%. The question is, how far will Bitcoin rise this cycle?

The historical precedent thus makes a strong case for bullish momentum moving forward. If the past is any indication of what to expect, it seems that the bearish winter of 2018/19 will soon be nothing but a bad memory.

The post 5 Reasons Why Bitcoin is Primed to Explode to New Highs appeared first on BeInCrypto.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

180 +