Bitcoin has several things working in its favor that could help propel it to new all time highs
Bitcoin has several things working for it that will likely propel it to new highs as soon as this year.
The first being one that gets talked about an awful lot, especially if you follow my blog.
The halving is now slated to take place somewhere around May 10th, possibly slightly sooner.
Bitcoin tends to react very favorably around the halving, both preceding it and following it.
With the largest gains seen in the 12 months post halving:
This is likely the single most important factor for driving bitcoin prices in 2020.
There are some other things that should help drive bitcoin prices this year as well...
Now that we know that the halving is the first and second most important event for driving prices, we can talk about a few other things that may help drive prices as well...
The next most important may be geopolitical uncertainty.
We have seen bitcoin trade more and more like a risk off safe have asset, and with geopolitical uncertainty likely increasing as well as a pandemic possibly in our midst, bitcoin should find plenty of safe haven buyers.
We also have central banks around the world set on following their easy money policies.
Just yesterday the PBOC announced they would be injecting billions into their economy to help with the pandemic.
Anything that debases fiat helps bitcoin go up in fiat terms.
Along that same line of thinking is low interest rates.
We are currently seeing a race to the bottom of sorts with countries around the wold lowering interest rates almost as fast as they can.
The US has been a bit of a laggard, but when they start lowing interest rates as well that should provide some fuel for bitcoin.
Keeping with that US theme, we are also in the midst of an election year.
Bitcoin's rally in early 2019 was mostly derailed by politicians putting it in the cross hairs.
This being an election year will mostly keep it out of the political headlines as the two parties try to win over as many fans as they can as we get closer and closer to the elections in November.
This should help give bitcoin some cover as move through the year.
Plus, we have gotten some regulatory clarity over the past year or so and likely will get some more as we move through this year.
Regulatory clarity is a big boon for getting institutional investors involved.
Finally, we have reset just about all the technicals on the charts.
After the euphoric rally in 2017 it was going to take time to work off the excesses and let the technicals fully reset before another massive move was ready to start.
Being over 2 years removed from the last euphoric period, we are now finally fully reset and ready for the next leg up.
Bitcoin has several things going for it that should help bitcoin reach new all time highs during this calendar year.
- Global QE
- Low Interest Rates
- Election Year
- Regulatory Clarity
- Technicals Reset
All these things combined should take bitcoin to new highs in 2020.
Stay informed my friends.