Bitcoin and cryptocurrency markets have been trapped in a downward trend for months, but with just a few weeks until Christmas and bitcoin bulls still upbeat, could we be in for (another) Santa rally?
The bitcoin price is around half its year-to-date highs, with most altcoins (but not all) struggling to keep pace with bitcoin and having a worse time of it.
Now, bitcoin and crypto heavyweights are predicting a sudden price surge, technical data is looking positive, and recent developments suggest 2020 could be a big year for bitcoin.
“We will see $10,000 bitcoin again and welcome $100,000,” ethereum cofounder and creator of bitcoin rival cardano, Charles Hoskinson, said last week, brushing off suggestions bitcoin could be in terminal decline as so-called FUD—fear, uncertainty and doubt. “Crypto is unstoppable. Crypto is the future.”
If bitcoin does stage a late in the year rally, it wouldn’t be the first time crypto markets have soared in December. Towards the end of 2013 bitcoin rocketed to what was an all-time high of over $1,000 per bitcoin.
A few years later, December 2017 saw bitcoin’s epic bull run peak at almost $20,000. But a lot has changed since then.
“I think bitcoin’s weakness since July is understandable,” Tom Lee, head of research at bitcoin and crypto strategy boutique Fundstrat Global Advisors, told CNBC in a recent interview, blaming the decline on increased regulatory scrutiny on crypto in the wake of Facebook’s troubled libra project and U.S. president Donald Trump’s criticism of bitcoin.
“I don’t think adoption has really grown since July and if you can’t grow adoption, network effects don’t take place and so bitcoin drifts lower. But does this change the 10-year, five-year, or even two-year outlook for bitcoin? I don’t think so.”
Lee is upbeat…