2019 was a positive year for the Bitcoin price, with the crypto asset’s valuation roughly doubling itself over the course of twelve months. Although Bitcoin declined heavily over the second half of 2019, it has started off 2020 with a bang.
So, what’s to be expected in 2020? Here are five major trends to watch for in Bitcoin this year.Bitcoin Halving 2020
The Bitcoin halving coming up in May is a key aspect of the bull case for Bitcoin in 2020. This is a scheduled occurrence that takes place roughly every four years where the number of new Bitcoin generated around every ten minutes is cut in half. Instead of 12.5 Bitcoin being included as a subsidy for miners in every block, 6.25 Bitcoin will now be generated instead.
Opinions are split in terms of thoughts on how this event will affect the Bitcoin price and whether it’s already priced into the market. Either way, it should be noted that the only two previous halvings in Bitcoin’s history led to significant appreciations in the crypto asset’s price in the months that followed.
The excitement around “The Halveninig” led to one industry executive to predict a $50,000 Bitcoin price by the end of 2020.Bitcoin’s Transition to Digital Gold
Bitcoin has been referred to as digital gold for a number of years, but 2019 was the year when that meme became much more realistic, according to data from the last six months of the year. In fact, the idea of Bitcoin as digital gold became so prevalent in 2019 that U.S. Congressman Brad Sherman (D-CA) claimed the crypto asset may be a threat to the U.S. dollar’s dominance in the global economy.
At the start of 2020, the similarities between Bitcoin’s and gold’s price movements around increased tensions between the United States and Iran did not no unnoticed. However, longer-term measurements of the correlation between Bitcoin and gold still indicate there is a very weak correlation between these two assets.
The digital go...