After a strong rally from the March lows, Bitcoin has stopped trending higher. For the past two months, the cryptocurrency has been caught in a 15% range that it has barely deviated from.
The consolidation has been met with assertions by analysts that BTC has lost its momentum. One trader asserted on June 30th that the key Ichimoku Cloud indicator showed “weakening bullish momentum.”
Yet many investors in the industry remain optimistic. One industry executive went as far as to say that he thinks Bitcoin is on track to hit $50,000 in 2020.
Bitcoin Could Rally to $50,000 in 2020: Nexo CEO
In May, Nexo co-founder Antoni Trenchev said that Bitcoin was on track to hit $50,000 in 2020. He made his prediction while BTC was surging, testing $10,000 as it attempted to set new year-to-date highs.
Despite the recent consolidation, he remains bullish. In a recent interview with Bloomberg’s Joana Ossinger at BlockDown, a digital crypto conference, Trenchev conveyed why he remains bullish.
Core to his bull case is BTC’s strict supply of 21 million coins:
“You can’t have the President of the United States tweeting out that the money supply, the total number of Bitcoin should be expanded from 21 million. You just can have that. Bitcoin is this perfect structure, which has all the right principles. And those once formulated, stipulated, put into code, they remain unchanged of any human intervention.”
Trenchev argued that this simple supply cap is what draws so many retail and institutional investors to the industry.
He added that with “almost $8 trillion” printed by central authorities over recent months due to the pandemic, Bitcoin and gold should do really well.
“So yes, I’m sticking to my prediction of 50K until the end of the year. I appreciate that it is a bold statement, but the fundamentals are there and the momentum is shifting there as well,” Trenchev concluded to the Bloomberg journalist.
Others Are Bullish, But Not That Bullish
There are many others expecting Bitcoin to rally even higher in 2020, but most don’t think $50,000 is possible. They don’t think that’s possible in such a short time frame, anyway.
Bloomberg came out with an extensive report on the crypto market at the start of June. In it, senior commodities analyst Mike McGlone suggested that Bitcoin could hit $20,000 this year and maybe $28,000 if the right trends align.
McGlone attributed this prediction to the fact that Bitcoin looks structurally similar to BTC at the last halving. The cryptocurrency trending as it did after the last halving will result in a year-end price of around $20,000.
The analyst also noted that with a growing correlation with gold, growing adoption of Bitcoin by institutions, and a spike in on-chain usage, BTC is likely to appreciate. Something, in fact, would “need to go wrong” for the asset not to do so, McGlone concluded.
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Price tags: xbtusd, btcusd, btcusdt
Industry CEO Doubles Down: Bitcoin Will Hit $50,000 in 2020