By
Godfrey Benjamin
April 29th, 2024
Bitcoin is making swift moves northwards since the start of 2020. In the first 20 days, the Bitcoin price has surged by nearly 30% so far. With several important Bitcoin events scheduled ahead this year, BTC is likely to hit new highs in 2020.
It has been a good start to this year so far for the cryptocurrency markets. The overall cryptocurrency market cap has added over $45 billion since January 1. The cryptocurrency market cap surged from $191 billion to now at $238 billion registering over 20% gains.
Bitcoin, the crypto king, has undoubtedly been a star performer as well! In just the first 20 days of 2020, the Bitcoin price surged nearly 30% bringing the excitement back among its investors. Earlier this week, the BTC price climbed all the way above $9100 levels crossing 30% gains.
However, it has retraced back and slipped $500 odd levels since then. At press time, Bitcoin is trading at a price of $8670 with a market cap of $157 billion.
Moreover, the much-awaited Bitcoin halving event is around 100-days away from now. According to some sources it is scheduled for May 9, 2020. However, Binance, for example, believes that there are 102 days left. Other sources expect that it will take place 112 days. However, it is clear that the Bitcoin halving will take place after the 630,000th Bitcoin block is mined. After the Bitcoin, the BTC mining rewards will reduce to half at 6.25 BTC per block from the existing 12.5 BTC per block.
Investors and analysts are excited to see another bull run before the Bitcoin halving event, and also after it. Historical chart patterns show that after every halving, Bitcoin price has skyrocketed in the years to come. This means that 2020 could be a great year for Bitcoin investors as BTC is likely to surpass its 2019 performance.
Factors that Can Trigger BTC Bull Run in 2020
While some analysts think that the Bitcoin halving effect is already priced at the current levels, others refute it.
1/ @Melt_Dem, I respectfully disagree. This is incorrect.
Yes, derivatives do help market efficiency and general price discovery.
However, no, of course they do not affect basic supply and demand. https://t.co/cQvxHWCjJU
— Jack Mallers (@jackmallers) December 25, 2019
Another crypto investor Alistair Milne shows patterns referring that the interest for Bitcoin over time doesn’t include Bitcoin halving effects in the current price. Thus, he believes that there is sufficient room for the BTC price to surge ahead.
Q/ What does everyone say is priced in, but definitely isn't? pic.twitter.com/qUxRHRvrKi
— Alistair Milne (@alistairmilne) January 19, 2020
Also, considering the now popular Stock-to-Flow model, Digitstalk has released some data showing that BTC is exactly where it should be. The Stock-to-Flow model predicts the BTC price on two factors: the stock and the flow. The stock refers to the total Bitcoins in circulation and the flow refers to new Bitcoins entering circulation.
Later this year, the Bitcoin network is also likely to go for another update called the soft-fork. The soft-fork will make some tweaks to the Bitcoin protocol without any need of updating the nodes. The soft-fork will work on Bitcoin’s scalability and privacy and is also backward compatible.
By the fourth quarter, the soft-fork is likely to introduce three planned proposals – Schnorr signatures, Taproot schemes and Tapescript language. Lucas Nuzzi, an analyst from Digital Assets Research, is bullish on the BTC soft-fork. “These are powerful foundational technologies that will bring novel smart contracts to Bitcoin’s base layer,” believes he.