Bitcoin has been around for a little bit over a decade and speculation from Bloomberg analysts are once again evaluating the possibility that Bitcoin could reach $20,000 by the conclusion of this year. This is obviously not an ordinary year with the global pandemic that has taken place, but that could actually be one of the reasons that Bitcoin has a shot at revisiting the all-time highs near $20K that were previously established in the later portions of 2017.
We are going to take a closer look at the history of Bitcoin and speculate on the magical formula that propelled Bitcoin markets to all-time highs in the past. Could this magical formula once again take Bitcoin investors to new all-time highs above the $20K threshold? That is an extremely tough question to answer, but if analysts from Bloomberg are speculating on the possibility, that is obviously a clear sign of how possible that outcome could be.
There are so many things to consider when trying to determine the potential for a cryptocurrency, but we are going to start by taking a look at past bull markets for Bitcoin.
Bloomberg Analysts Predict $20K Bitcoin This Year
Previous Bitcoin Bull Markets
Bitcoin has had several bull market scenarios in the last five years, but there was no bull-run quite as spectacular as the late-2017 Bitcoin bull market. That moment in time was truly magical for Bitcoin and the hype behind cryptocurrency at the time is part of the reason that it propelled up to nearly $20,000 in the markets.
The traditional stock market indices were also in a massive bull market in 2017, which could have had a significant impact on raising cryptocurrencies like Bitcoin as well. After the massive sell-off in March of 2020, many economists and analysts are expecting a massive recovery in the final two quarters of the year. This could once again massively influence Bitcoin’s markets and potentially propel the price of a single Bitcoin near $20K once again.
It is worth noting that after the 2017 Bitcoin bull run, most of 2018 and the first half of 2019 was devastating for Bitcoin investors. The value of a single Bitcoin fluctuated rapidly, but declined on a larger scale to as low as $3,200 per Bitcoin.
Now that Bitcoin prices are once again entering the five-digit territory above the $10K threshold, investors are once again left to wonder how quickly Bitcoin could potentially climb to all-time highs. The formula for potential could be there if traditional markets continue to recover rapidly, but there is no way to know for sure if the global pandemic will remain contained and improve over the course of the next six months. All of these factors are surely going to influence the Bitcoin price in the months to come before the conclusion of the year.
Historical Bitcoin Bull Markets
- 2013 through 2014
- 2016 through 2017
- First Half of 2019
Supply and Demand
The Bitcoin halvings that take place periodically can have a major impact on the supply and demand for Bitcoin’s cryptocurrency. This obviously has an incredible influence on the price of a single Bitcoin, but other external factors also come into play and affect the possible outcomes.
The general cost of mining a Bitcoin gets tougher every single time that a Bitcoin halving takes place. In May of 2020, Bitcoin experienced the third official block reward halving and chopped in half the potential to mine Bitcoin. From traditional economics, this would drive the price upwards assuming that demand stayed the same, but this is a speculative market and the future potential of Bitcoin in global finances also has to be priced into the overall value.
$20K Potential
The potential to reach $20K in Bitcoin again is obviously very real, especially if global economies continue to recover rapidly. Some analysts have also made the case for Bitcoin to rise under negative circumstances for global economies, but this seems less likely from a general standpoint.
The truth is that there are too many external factors that could play a role in the value of Bitcoin going forwards. The potential for Bitcoin to reach $20K by the end of the year is possible, but it’s not the most likely scenario. It could be argued that a return to $5K is just as likely depending on how the future unravels.
The good news for both bulls and bears in the cryptocurrency investing markets is that Bitcoin will probably visit $20K and $5K again within the next five years, but it could be anyone’s guess as to when either of those possibilities actually occur.
New Popular Countries for Bitcoin
There are dozens of regions where Bitcoin is becoming more and more popular. People are starting to buy bitcoin in Australia, Japan, Canada, and China. The Bitcoin collectors are part of the reason that there is a real chance for Bitcoin to rally to all-time highs in the next few months and years.
