Bitcoin was pushing rapidly toward $9500 at time of writing and 24 hour volumes had topped $30 billion. A long-winded retracement above $10,000 is roundly expected.
Meanwhile, some analysts such as Fundstrat’s Tom Lee believe that Bitcoin will surge well above $20,000 in 2020. Lee says that $27,000 is possible. He says it can be done by summer. He told as much to Yahoo! Finance in the video below.
Highlight: “We’re really optimistic on crypto and bitcoin this year,” @fundstrat’s Global Advisors Managing Partner & Head of Research Tom Lee says. “Whenever bitcoin breaks back into its 200 day, its average six-month gain is 197%.” pic.twitter.com/2tqzsuOV0m
— Yahoo Finance (@YahooFinance) February 4, 2020
Lee claimed that things like coronavirus “prove the use case” for cryptocurrency. He believes there will be strong gains for Bitcoiners in 2020.
Lee said, in part:
Only good projects are surviving now. So there’s actually a lot of interest in looking at the things that are still alive. […] I think it’s a good time to look at crypto.
Bullish predictions on Bitcoin are a dime a dozen. It’s easy enough to say that it will be worth more at some future time than it is today.
The question, for Bitcoin, is what purpose it will serve as the wider and wider population begins to interact with it. If Bitcoin’s to be used for microtransactions, its fees are going to have to come down. If Bitcoin’s to be used for a “store of value,” then it will have to become more accessible. So everyone can store their value.
Ease of Use … Case
Anyway you slice it, Bitcoin and other cryptocurrencies have a ways to go in terms of invading everyday life.
Yet, Bitcoin trading is strong, and the volume distribution is healthy. It seems that no exchange has more than about 3% of Bitcoin’s volume. A total of roughly 400 exchanges trade BTC, the first more than 100 doing millions of dollars per day.
Bitcoin volumes don’t account for the billions upon billions of dollars worth of BTC traded in the altcoin markets. If that was accounted for, the volume would be closer to $100 billion over the 24-hour period. Tether and other stablecoins also account for a lot of the trading volume, but Bitcoin acts as a trading pair for virtually everything.
The goal is to get into BTC, and BTC is also the easiest way to get into crypto.
As we said, there are at least 400 active Bitcoin markets, but that doesn’t include things like Bitcoin ATMs, LibertyX, Coinmama and the dozens of other ways people can acquire cryptocurrency today.
With a halvening just a few short months away, people expect 2020 to be a transformative year for the Bitcoin price. The question is what will sustain the demand down the line. Will it be remittances, merchants, or people using BTC as a store of value? Will it be something else built on top of Bitcoin? And how integral is the Lightning Network, and when will it see wider adoption?
These questions and more will be answered with time.