Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
The June Edition of the Crypto Research Report, a document which sees a host of Bitcoin and cryptocurrency experts analyse and detail the market’s movements, outlines predictions that the market will hit a massive surge in the next decade.
The report shows predictions from the field experts to suggest that the price of Bitcoin could reach $397,000 USD by 2030. They also estimate that altcoins such as Ethereum, Litecoin, Bitcoin Cash and Stellar will hit a similar spike, soaring to new heights in price before 2025.
The Coronavirus On The Global Economy And Cryptocurrency Market
The report, which touches on the impact that the global pandemic from the COVID19 Coronavirus has had on the world economy comments:
“The stimulus that the Federal Reserve took two months to inject is larger than the entire stimulus that they injected in response to the 2008 “Great Recession.” The Federal Reserve acted so quickly and so swiftly, because they know how fragile the financial system is, and how dependent markets are on cheap money… Traditional markets are no longer reflecting the state of the economy. Instead, they are reflecting the central bank’s effort to keep the pension system alive and to get Trump reelected. Unfortunately, there is no turning back now. Every hiccup in the economy needs to be met with even greater inflation, leading to an even wider gap between reality and finance.”
The report further details that Bitcoin price moved from a figure of $3,600 USD in March to see $10,000 USD in May before sliding back to $9,000 USD. Pointing to the Bitcoin halving which occurred in May, the report comments on how the event did not have a significant impact on the market, as most traders and investors expected. However, the experts did speculate that the uncertainty about the economy as a result of the Coronavirus might have played into this, dampening investments that might have come in otherwise. Optimistically, the researchers note that the national currencies and politics surrounding export and import markets might drive individual investors to alternative assets, such as Bitcoin investment.
Read more: What Is The Bitcoin Halving?
Bitcoin At The Beginning Of Adoption Curve
The researchers state in the report that they believe that Bitcoin, which launched just over ten years ago, is at the early stages of adoption still, saying:
“We believe that Bitcoin is still at the very start of its adoption curve. The price of $7,200 at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets [worth $212 trillion]. If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.”
Source: The Crypto Research Report
At the future price prediction, this would mean an increase for Bitcoin of more than 4,000% by 2030. The altcoins, namely Ethereum, Litecoin and Bitcoin Cash would be looking at increases of 1,600%, 5,000% and 5,400% respectively. Stellar’s XLM would be sitting at a hefty 11,000% increase should the prediction come to fruition. While it sounds like an unbelievable surge, it’s worthwhile remembering that there is still a ten-year gap between the current price and the predicted amount in 2030, and Bitcoin has had some outrageously bullish surges in the past.
Expert Predictions: Where Will Bitcoin Be In Five Or Ten Years?
There are numerous papers, data and analyses documenting the history and potential future of Bitcoin’s price. As would be expected with speculative analyses, not all reports agree on where the token might be heading. This could be attributed to a difference in the rationale behind price predictions according to the assumptions made.
For example, cryptocurrency exchange Kraken and the Economist predict that Bitcoin’s price will hit a whopping $1.91 million USD by 2022, Satis estimates a price tag for Bitcoin of $96,000 USD by 2023, and Vision & sees Bitcoin hitting $65,000 USD by 2028.