Categories: Bitcoin Business

Digital Asset Research predicts Bitcoin will hit $60,000 in May 2020

Click here to view original web page at finance.yahoo.com

Cryptocurrency-focused research company, Digital Asset Research, has released a new bitcoin price prediction model based on scarcity—i.e. how few bitcoins there are left to be mined. The model estimates that Bitcoin's price could reach as high as $60,595 by May 2020, nearly six times its current value of $10,670. This would place Bitcoin's market capitalization at almost $1.25 trillion.

The prediction model is largely based on extrapolating Bitcoin's previous price performance—into the future. Another key factor the report says will determine price is Bitcoin's block reward halvings–the next of which is due in 2020. As the reward for mining blocks is cut in half, the price of Bitcoin is due to go up.

While the report assumes that history will repeat itself almost perfectly, it did provide an interesting insight into Bitcoin's behavior of the past few years. Digital Asset Research found that the Bitcoin price tends to peak about a third of the way through each halving reward cycle—each peak beating the previous. If this were to continue, this means that Bitcoin would find its eventual ceiling sometime in September 2021–surpassing the $60,595 number it quoted originally. The report however, didn't speculate on what that upper ceiling might be to bitcoin's price.

But obviously, this would require a large inflow of money—perhaps $1 trillion—to enter the market, to boost prices. Digital Asset Research speculates that it could come from investors looking to hedge against government currencies. This has been widely discussed in crypto media, with many suggesting that a U.S.-China trade war or further geopolitical tensions in Hong Kong could drive investors towards Bitcoin. However, as we saw recently, when the Dow Jones crashed—money came out of the market, showing that Bitcoin might be seen as a more risky, volatile asset rather than a safe haven.

The prediction model was generated using Bitcoin market data, with additional market insight borrowed from price analyst Plan B (@100trillionUSD on Twitter), who previously highlighted the link between Bitcoin's value and its scarcity. Digital Asset Research plans to revise the model as new information or market functions become apparent, to improve its accuracy over time.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Wealth manager launches world-first bitcoin yield fund

A US-based wealth manager has claimed an industry milestone with the launch of the first cryptocurrency derivatives-based yield fund on… Read More

5 hours ago

CME Group To Launch Bitcoin Options In Early 2020, Cites Client Demand

CME Group Inc (NASDAQ: CME ) announced Friday that it will launch options on its Bitcoin futures contracts in the… Read More

5 hours ago

Nigerian Rocks Crypto World By Returning NGN 28.8 Mn Worth Of Bitcoin That Was Sent To Him In Error

Here’s the latest on today’s edition of “Wait, What?!”; A Nigerian man woke up one day to find that NGN… Read More

5 hours ago

Bakkt: A Big Boost For Bitcoin (BTC) or Will It Flop?

Share Tweet Send Share The launch of the largest institutional bitcoin product of the year is finally upon us. Can… Read More

5 hours ago

Bitcoin (BTC) Metrics Pointing to Bullish Returns

Share Tweet Send Share Many analysts over the years have said that bitcoin is a speculative bubble, comparing it to… Read More

5 hours ago

Bitcoin Sheds $10,000 Support Again Ahead of Bakkt Launch

Ahead of the launch of Bakkt’s Bitcoin (BTC) futures, bears have continued to assert control over the cryptocurrency market. Ouch.As… Read More

11 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More