FxWirePro Survey: Bitcoin demand to pick up in 2020; hit $12,000 soon
Tue, 14 Jan 2020, 09:46 am UTC
The market leader, bitcoin, will rise over the coming 12-months on the inflow of institutional funds into crypto assets and renewed optimism among market players, an FxWirePro survey showed.
After a year-long pain in 2018, the most preferred cryptocurrency, which gained about 90 percent last year, will continue to recover in 2020. For the first time since November 2019, bitcoin has broken through the $8,000 rate and gained nearly 12 percent during the first few days of this year.
According to the median forecast of 21 research organizations and institutional investors surveyed between January 3 -13, bitcoin is forecast to hit a fresh high of $12,000 by end-2020. While 17 forecast it to surge to $10,000 or more by December, only four forecasts the price to rise to $50,000 or more. Only two predicted the BTC/USD to decline and hit as low as $3000.
"Bitcoin demand is expected to pick up in 2020, with market forces likely to make a stronger argument for the emerging cryptocurrency. In a world where rates are at historic lows and the equity market looks to be inching closer to major capitulation, the idea of owning a decentralised, limited supply currency, becomes increasingly attractive as a store of value," noted LMAX Exchange in its January 13 report.
"Moreover, there is plenty of developments going on in the decentralised technology space, which should only add to the draw."
It is worth noting that Paolo Ardoino, Chief Technology Officer at Bitfinex, said he does not forecast bitcoin to fall below $6,000 rate. In an interview with Cointelegraph, he said "We might see some FUD before the Bitcoin halving. By the end of 2020, I think the Bitcoin price will be at least $20,000."
"Setbacks should be very well supported in the 6,000 area, with a higher low sought out in favour of a bullish continuation back above the 2019 high and towards the record high from late 2017 further up. Ultimately, only a weekly close below 5,750 would compromise the constructive outlook. Back above 10,468 further encourages bullish prospect," LMAX added.
Ethereum, the second-largest crypto by market cap, is also forecast to gain over the coming year and hit the $500 rate by end of this year on hopes of demand recovery. But a global economic downturn and regulatory challenges are the biggest downside risks over the coming year.
"There is plenty of Ether demand built up in the 80-100 area, with so much optimism around prospects for the blockchain given all of the development going on in the decentralised finance space. At the same time, macroeconomics will likely play a negative role in 2020, at least relative to the price of Bitcoin, with Eth expected to underperform in a risk off backdrop, in light of Ethereum's higher sensitivity and correlation with risk themes," LMAX added.
"The market is in the process of a major correction after a surge in the second quarter of 2019. Look for setbacks to be well supported above of previous resistance turned support at 100 on a weekly close basis, in favour of the next major higher low and bullish resumption back towards and through the 2019 high up at 363. Ultimately, only a weekly close below 100 would compromise the outlook."
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