Despite the recent upturn in the cryptocurrency sector , Bitcoin is still far from its peak of $20,000.
Yet a leading financier believes that Bitcoin will shortly revisit this benchmark.
Bitcoin to Soon Surmount $20,000?
During the April 2nd broadcast of CNBC's \"Closing Bell,\" Mike Novogratz — formerly of Goldman Sachs, now head of crypto-focused bank Galaxy Digital — reaffirmed his prediction earlier claim that Bitcoin is poised to breach the $20,000 mark by the end of 2020.
He expressed that in the subsequent six months, BTC should experience a twofold increase, implying a price of no less than $12,000 by October.
\"This is the year for bitcoin,\" says @novogratz , and should it not rise, \"I may just retire my boots.\" pic.twitter.com/KbUQfMzzEI
— CNBC's Closing Bell (@CNBCClosingBell) April 2, 2020
His confidence in the prediction was such that he stated:
\"It's Bitcoin's time, and if it doesn't appreciate by year's end, I might just hang up my boots.\"
Not just Novogratz is betting on Bitcoin hitting $20,000 this year.
Per previous reports from Blockonomi, Dan Morehead, once a Wall Street trader and now the leader at crypto fund Pantera Capital, shared his belief that Bitcoin could break new ground within the next 12 months:
My guess is that institutions will take a few months to address their pressing portfolio issues and another few months considering innovative prospects such as crypto and distressed debt. As they begin investing, those sectors could see significant growth.
Additionally, Raoul Pal — once an executive at Goldman Sachs and a hedge fund manager — mentioned in a recent dialogue his belief that Bitcoin Bitcoin could exceed its $20,000 peak in the next 12 to 18 months.
What Spurs Such Optimism?
Although every investor and analyst holds individual views, these three seem to concur that central bank activities will propel Bitcoin to new heights.
In a previously mentioned discussion, Novogratz outlined that the society has inevitably entered an era of relentless currency printing and debt monetization to spark economic revival.
To prevent societal collapse, central authorities worldwide have resorted to unprecedented measures — expanding unemployment benefits, offering tax reprieves, dispending universal subsidies, engaging in unrestrained monetary injections, and enforcing negative rates.
These experts agree that this trend, which dilutes traditional currencies and highlights systemic vulnerabilities, is favorable for Bitcoin, a decentralized currency immune to inflation. Morehead elaborates in a recent bulletin:
As governments expand fiat supply, securing tangible assets like stocks or property becomes costlier, surpassing usual levels absent money supply expansion. Simultaneously, this leads to inflated asset prices, including for gold, Bitcoin, and other digital currencies.
Novogratz, notably, anticipates Bitcoin's block reward halving could significantly drive up value, as he discussed earlier this year with CNBC.
Indeed, PlanB's research shows that Bitcoin's market math aligns on a logarithmic scale with 95% reliability, or virtually sure-fire in layman's terms.
The analysis projects Bitcoin should attain a value between $55,000 to $100,000 — a 10x to 20x rise from present levels — post-halving due to reduced emission shock.
