For the first time since February, the price of Bitcoin has reached above $10,000. According to the earlier reports, initially, its price came down by $1500 within just three minutes and later, due to heavy sale orders on BitMEX exchange, it further collapsed to $8,600.
On spot exchanges and some of the derivative exchanges, the digital asset settled on $9,000.
Price Action Of Bitcoin In 2020 Is Similar To That Of 2016
Recently, a Bloomberg analyst, while sharing his views mentioned that though the Bitcoin has experienced a ferocious sell-off, he believes that in the coming days its price would reach $20,000.
Mike McGlone, the analyst of senior commodities at Bloomberg, stated that by the end of the year 2020, the Bitcoin would hit $20,000.
McGlone further stated that he has noticed that the price action of Bitcoin, before and after halving, it appears quite similar to 2016’s action. That is the reason he believes the Bitcoin price would reach $20,000.
While explaining it further, McGlone said, “Bitcoin is mirroring the 2016 return to its previous peak. Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend”.
BitMEX Chief Executive Believes Bitcoin Will Reach All-Time High
McGlone is not the only one who thinks Bitcoin’s performance this year would be better.
The Chief Executive of BitMEX, Arthur Hayes, in his newsletter ‘Crypto Trader Digest’, which was released in April 2020, asserted that in the recent year the Bitcoin’s performance would reach an all-time high.
The newsletter written by Hayes explained that the Bitcoin trend would be supported by the amount of fiscal and monetary stimulus which will be initiated by the government and the central banks.
In March 2020, Dan Morehead, the founder of Pantera Capital which is among the world’s leading crypto and blockchain centric funds, in his newsletter mentioned that the central bank has increased the supply of money to buy the scarce asset, as it would help in increasing the value of the dollar in the market.
Articles You May Read.