- Bitcoin is heading to $20,000 unless something goes wrong.
- This move will have a spread over effect on most altcoins.
Bitcoin is heading to $20,000 according to Michael Novogratz. Bitcoin has made a very interesting recovery from the severe pullback caused by the global pandemic. The latest market recovery has had a positive effect on most of the altcoins with the likes of XRP, Bitcoin Cash, Ethereum, Dash, and Litecoin showing all green in their last seven-days percentage change.
Novogratz Predicts Bitcoin is Heading to $20,000
According to the CEO of Galaxy Digital Michael Novogratz, the bull-run of Bitcoin will continue to $20,000 unless something goes wrong. According to him, Bitcoin is bound to rise to as high as $14,000 in the next three months before it proceeds to his predicted price point. His prediction was largely influenced by the liquidity pump and the positive retail interest of the market.
The United States has signed a $2.2 trillion coronavirus aid package with another proposed $3 trillion HEROES ACT expected to grace the market with an interesting liquidity pump to drive the price of Bitcoin even higher. The fact that Bitcoin is heading to $20,000 is not surprising as many predictors have predicted way above that price point.
Novogratz, the billionaire investor who has 20% of his net worth in Bitcoin, Gold, and Silver has said that the retail interest of Bitcoin is still high, and stock investors are expected to shift their direction of investment to Bitcoin and Gold. The recent speculation of the Bitcoin price in relation to the post halving impact provides multiple good factors for Bitcoin to stage a massive bull-run.
More Revelation of Why Bitcoin is Heading to $20,000
Novogratz revealed that there has been a lot of institutional interest in recent times with a bit of a challenge. Unlike gold that has existed for over 3000 years and much easier to buy, Bitcoin needs a bit of education on how to buy which has affected the number of people investing in it. If things were much easier, the demand would have gone even higher. However, institutions are learning how to go about it.
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Also, Bitcoin has an adoption game that is missing in gold according to the billionaire investor. His assessment of the growing interest of institutional investors seems to coincide with the actual figures. According to the Grayscale investment, 84% of its investment in the second quarter of 2020 came from institutional investors. Bitcoin is heading to $20,000 because institutional interest is a very decisive factor that changes the direction of the price.
Bitcoin price is not a product of undefined factors but determinants that have the capability to affect demand to a large extent. The valuation of Bitcoin and its utility functions put it above the Dutch tulip mania, the dot com, and any speculative investable asset that is bubbling to burst.
Global open interest has risen above $4 billion since March 2020 according to data from 12 derivative exchanges.
The global stock market is also trading at a five-month high which has had a positive impact on the Bitcoin price. In fact, it is expected that this impact goes on for some time. Bitcoin for some time has had a positive correlation with the stock market. Not just that, the Bitcoin halving will also play a crucial role in Novogratz’s prediction.
The reduction of the block mining reward by half has made it expensive to mine Bitcoin, pushing a number of producers out of the market. The effect on the market supply will send the Bitcoin high as witnessed in the previous halving events.
Bitcoin is Heading to $20,000 – Will this Affect the Altcoins?
Of course, yes! A rising tide affects all boats. A lot of altcoins largely correlate with Bitcoin explaining why most of the altcoins recorded their all-time highs in late 2017 and early 2018 when Bitcoin was doing well. The likes of Dan Morehead, the CEO of Pantera Capital, and Mark Yusko, the CEO of Morgan Creek have predicted a price way above the $20,000 for Bitcoin, expecting the price to hit $500,000.
XRP is currently on the move, and with so many partnership deals, and with the massive adoption rate, it can probably break its all-time high as well. The size of the Bitcoin market cap affects the entire market depending on the direction it goes, and the assets with proper utility functions make the most moves. This means Dash will also benefit very much from the market move. Dash is doing wonders in terms of adoption in Latin American countries, and it’s currently finding its feet in Africa with these efforts expected to reflect in its price.