Is there still a chance that Bitcoin will reach $20,000 in 2020?

Bitcoin , the largest cryptocurrency by market value, has been fluctuating between $10,000 and $11,000 for some time, and its upward momentum has weakened. However, some analysts still believe that Bitcoin has a chance to continue to soar in the last quarter of this year.
Bitcoin price volatility has decreased in recent weeks, and some individual investors may take this opportunity to hoard Bitcoin.
“Any consolidation is a good sign for the next bull run,” Jack Choros, crypto commentator and content manager at CryptoRadar, told FinanceMagnates. “By the end of the year, Bitcoin will be worth close to $20,000.”
The relationship between Bitcoin and the U.S. dollar is a focus of many analysts. Peter Goodrich, tax manager at accounting firm Prager Metis, said, "Since the market crash in March this year, the price of Bitcoin and the U.S. dollar exchange rate index (DXY) have been inversely correlated."
Crypto analyst Max Keiser also tweeted this week that “Bitcoin, like gold, is negatively correlated with the dollar.”
Goodrich mentioned, “DXY has been consolidating for the past few weeks, and so has the price of Bitcoin. DXY has moved slightly upward in recent days, which has had a negative impact on the price of Bitcoin.”
Although the U.S. dollar is recovering in the short term, the impact of the COVID-19 pandemic on the global macroeconomy may push the dollar lower in the long term.
“There are a lot of investors using Bitcoin to hedge against volatility in fiat currencies like the U.S. dollar and precious metals like gold,” Juan Aja Aguinaco, co-founder of Shyft Network, told FinanceMagnates.
Goodrich said, “As the epidemic continues to exacerbate the global financial crisis, economic uncertainty has increased. Governments have been using quantitative easing monetary policies to try to alleviate the impact of the global financial crisis. Injecting money into the economy reduces the value of fiat currencies, which is the main catalyst for increased interest in cryptocurrencies, which is reflected in the total market value of this asset class.”
Therefore, Bitcoin may benefit from a long-term decline in the U.S. dollar. Goodrich believes that Bitcoin is a result of the 2008 financial crisis, and the next major milestone for cryptocurrencies is regulatory clarity, which will bring this asset class into the mainstream.
According to media reports, both the European Union and the United States made progress in cryptocurrency regulation this week, which will lay a solid foundation for the development of the crypto industry.
Distrust of traditional financial institutions is also a boon for the crypto industry. The FinCEN Files released last week revealed how some of the world’s largest banks help criminals move assets around the world.
Aguinaco believes that “the recent leak of FinCEN files shows great support for crypto. It shows that traditional financial institutions are not complying with existing anti-money laundering measures. This is an opportunity for new banks and other fintech startups, as well as blockchain companies: to show the world that they can do better and provide users with better products and services.”
The DeFi craze, which has cooled down in recent days, is also driving the crypto market forward.
Choros said that although DeFi is currently somewhat cool, projects like Yearn "have real value because the price of the token is actually related to the amount of funds locked by investors." That is to say, the prices of some of these tokens are not entirely driven by speculation. "The price of the token is linked to the actual value, which is a good sign."
Overall, industry insiders are still optimistic about the development of the cryptocurrency market. Although historically, the fourth quarter is not the best quarter for Bitcoin, the last time Bitcoin was close to $20,000 was in the fourth quarter. Compared with 2017, the infrastructure of the encryption industry is now more mature. (NetEase)