A senior commodity strategist for Bloomberg Intelligence, Mike McGlone has stated that the two factors—bitcoin’s fixed supply (21 million coins) and growing adoption—are probably going to help the world’s biggest digital currency’s appreciation in 2020.
“Bitcoin is winning the adoption race, notably as a store-of-value in an environment that favors independent quasi-currencies,” stated McGlone. “In 2020, Bitcoin supply should increase about 2.5%, an all-time low on the way to zero growth,” he added.
Expanding gold costs are additionally likely to support bitcoin’s value this year, as indicated by McGlone. “Gold prices will keep climbing in 2020 and so should Bitcoin,” stated the senior analyst.
Bitcoin’s volatility should probably keep on declining, as indicated by McGlone, who sees $6,000 as bitcoin’s major support level and $10,000 as a resistance level in 2020.
The cost of bitcoin, meanwhile, is bound to “edge toward 2019’s high of about $14,000, though they probably won’t stay below the trough at just above $3,300,” stated McGlone, adding:
“Bitcoin should again outshine most crypto assets in 2020 as the unique and appreciating digital version of gold.”