Why 2020 Will Bring Record Highs For Cryptocurrencies

This year will be one to forget for the majority of cryptocurrencies which are ending it lower than they began. 2020 could be fundamentally different though and here’s why.

A Brighter Future For Cryptocurrencies

Total crypto market capitalization is currently 50% higher than it was this time last year, however that is largely bitcoin’s doing. Most of the altcoins are actually trading lower than they were at the beginning of 2019 and the year will be one to forget for many of them.

There are several factors that could drive a revival and new highs in 2020 though. Economic concerns are growing and central banks are taking more extreme measures to avoid recession.

Negative interest rates and quantitative easing is putting massive pressure on financial markets and fiat is under threat of devaluation. Several countries have already suffered massive hyperinflation and people have turned to cryptocurrencies as a safe haven.

With a distortion in the value of assets investors may turn to riskier ones such as bitcoin. Additionally, stocks and real estate are at all-time highs while global debt is skyrocketing. The millennial generation will not want to get burnt so they may also turn to cryptocurrencies as observed by industry analysts.

The US election could also play a part, as President Trump will do anything to keep stock markets pumped while negatively impacting global trade agreements in the name of protectionism.

The bitcoin halving narrative cannot be ignored, and a rally is likely to occur after the event. The reduction of inflation and the doubling of the stock to flow ratio are both bullish for bitcoin though there may be some negative impact…

Source Link