With the new year just around the corner, cryptocurrency investors and traders are getting ready for what the markets might have in store in 2020.
Hopefully, with a brand new year comes brand new blood to fuel the next big crypto bull run.
According to key cryptocurrency analysts such as Mati Greenspan, Alessio Rastani, Trace Mayers, and PlanB, there’s a high probability of a Bitcoin bull run sometime within the next 12 to 18 months.
Funnily enough, some economists are predicting an economic recession during the same period. Will that be the final catalyst for a massive cryptocurrency bull market?
If so, will altcoins such as Litecoin enjoy some huge gains?
Let’s take a look.
Bitcoin price prediction
The above price prediction is based on PlanB’s BTC stock-to-flow model, discussed in this guide.
Stock-to-flow models have been used in the traditional investment field for decades. A stock-to-flow model will show the amount of a commodity held in inventories divided by the amount produced annually.
This tool can be used and the process replicated among other Proof-of-Work cryptocurrencies, as they follow similar stock-to-flow models.
The only requirements for the stock-to-flow model (or ratio) to make sense are:
- A known (visible and accountable) supply
- A known maximum supply (preferable)
If this model continues to satisfy its future predictions, this is what could happen to Bitcoin in the next couple of years:
- Bitcoin could reach $100,000 sometime in 2021
- Bitcoin could reach $1,000,000 sometime in 2026
What is the recipe for an alt-season?
There are a few factors that tend to help altcoins during bull markets.
Even though we could argue technical advancements are the most important detail for price, fundamentals tend to apply in the long term rather than the short term.
Looking at the overall altcoin prices above (courtesy of Messari.io), we see the majority have fallen between 80% to 90% since their all-time highs. The cycle has been repeating since…