Bitcoin (BTC) price could reach its peak of $100,000-$200,000 in 2020 as the halving of mining rewards will trigger the "fear of missing out" (FOMO), crypto professional said.
Bitcoin price may also surge when there is more regulatory clarity, according to crypto industry participants.
Foreign exchange (forex) news outlet, TheStreet, recently published a blog post in which it noted that experienced investors may be able to make some general, or “broad”, predictions about how assets will perform - “based on valuations, investor behavior, and cyclical market patterns.”
According to Jim Blasko, the founder of Bitcoin Talk Radio, bitcoin (BTC) price could reach its peak at around $100,000 to $200,000 toward the end of 2020 or the first quarter of 2021. Blasko has based his prediction on the process through which mining rewards are calculated on the Bitcoin network.
He thinks that investors will experience the “fear of missing out” (FOMO) when bitcoin’s mining rewards are halved from their current 12.5 BTC to 6.25 BTC. Per Blasko, crypto investors and miners are reminded that there’s only a finite supply of bitcoin that will ever exist - each time the rewards for mining the cryptocurrency are halved.
Realizing There's A Finite Bitcoin (BTC) Supply
When realizing this, the perceived value of the pseudonymous digital currency increases significantly as it leads to positive “parabolic” price movements.
Marshall Long, the cofounder of eBoost, a platform that makes it easier for the gaming community to use cryptos, pointed out that in November of 2012, bitcoin mining rewards were reduced from 50 BTC to 25 BTC.
This led to prices increases which were “40 times the previous high point of $30 in 2011 to a new high … of $1,200”, Long noted. Going on to cite other possible factors contributing to bitcoin’s price increase, Long said that more clarity regarding cryptocurrency regulations would also gradually drive bitcoin’s price upwards.
He added that he is “very interested to see how” the US Securities and Exchange Commission’s (SEC) decision to ultimately approve or reject all Bitcoin ETF applications “plays out” as it could potentially ignite another bull run.
Governments Are Serious About Crypto
Long also believes that crypto adoption has increased significantly over the years as there are now reportedly over 30 million users who have created a cryptocurrency wallet - compared to only about 9 million online wallets that had been opened in 2016.
He explained that as more people become aware of bitcoin and start using it, its price will go up. Meanwhile, Michael K Jeoung, the CEO of TrustVerse, a crypto asset management platform, said that people who’re uncertain, or doubtful, about the digital currency market may be overreacting.
He thinks that investors who are concerned about the harsh, or negative, stance governments have taken against cryptocurrencies - particularly in China - might also want to consider that many countries are planning to launch their own national digital currency, or central bank digital currency (CBDC). This, in itself is a sign that bitcoin and other cryptos might be here to stay and could eventually reach mainstream adoption, according to Jeoung.