Two years ago, the price of bitcoin soared up the heights of $20,000. Then it fell to its lowest point coming down to Earth at $3,200, one year ago. But this time around, things are looking a little different.
While both of those points were at the extreme ends of the spectrum, this year, the bitcoin price is currently stuck somewhere in the middle. After rising suddenly in May this year to touch $12,000, its price has fallen back down to $7,230. And, like usual, it could go in any direction.
But to find out what may happen, Decrypt ate up some crypto analysts’ spare time to find out in which direction they expect the wind to flow over the coming weeks and months. Here’s what they believe will happen.
The bullish case for bitcoin
Kira Sun, co-founder of Prime Broker TroyTrade, is optimistic about the price of bitcoin over the short and the long term.
“Volatility is declining and bitcoin’s price is trying to assess its next direction. Personally, I believe that the signals indicate a rise towards the end of the year, rather than a fall like in 2017,” he told Decrypt.
Sun said that’s because bitcoin’s finally beginning to be conceived as a store of value “not just among its believers, but also around institutions with big financial impact such as hedge funds.” Sun cites the Chairman of the Federal Reserve himself, Jerome Powell, when he said that bitcoin is perceived as an alternative to gold when talking with Congress. The continued influx of those beloved institutional investors could increase bitcoin’s price, or at least reduce its volatility, he argued.
Sun argues that bitcoin is an alternative to gold. Image: Shutterstock
Next, Sun points to Bitcoin’s impending block reward “halvening” event, which is expected to occur in May 2020. The halvening refers to a hardcoded consensus rule on the bitcoin blockchain, which cuts the block reward—how much bitcoin miners receive for completing complex computational puzzles—in half every…