Bitcoin (BTC) eyes $20,000 this year if bulls remain intact

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  • After following a bearish trend, Bitcoin has finally entered a zone where new all-time high seems possible.
  • The sudden growth of Bitcoin is encouraging investors to bet on it for the long-term.
  • Bitcoin is currently hovering above support zones and aims to surpass the 11k barrier in the near term.

As inflation remains imminent, investors are turning to Bitcoin as an investment opportunity. After a rough week, where Bitcoin saw a massive drop in the price, it has been steadily rising and has finally recovered the previous losses.

The demand for BTC/USD is continuously rising which is indeed pushing its price higher. Top analysts predict Bitcoin will surge above $20,000 amid the current boom. If the bulls stay intact Bitcoin is aiming at a new all-time high.

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There is room for Bitcoin to grow

Furthermore, founder of Data Dash Nicholas Merten suggests there is still space for the DeFi as well as the cryptocurrency sector to grow. Both markets are comparatively lower than other markets.

Merten Noted:

“The cryptocurrency market cap is $346 billion. Not that much. The global real estate markets are hundreds of trillions of dollars. If you’re talking about treasury markets, US government bonds are tens of trillions of dollars, global bonds for governments are over a hundred trillion dollars, equities markets are over a hundred trillion dollars. You get the gist.”

In Merten’s perspective, Bitcoin complies with all laws of an economical culture:

“I believe Bitcoin concisely is going to do well because the economics of Bitcoin makes total sense. The narrative is there of a store of value. But most importantly, the inflow and outflow economics are at play here, so we have the halving event which reduces the supply issuance and along with this as well we have people stacking Bitcoin at a record pace.”

Merten further references stock to flow as evidence for a possible surge:

“If we look at the last cycle from the stock to flow, what we’ll realize is that after the halving initiated back here in the summer of 2016, as the fair value of Bitcoin went up into July of 2017, this is basically where the market should have topped it, around $5,000.

It should have topped out in a year after the halving in July of 2017. But it didn’t. What happened was we had a delayed response here and what happened was we actually got up to the fair value range in October of 2017, and then massively overshot just like we did back over here for the stock-to-flow model towards $20,000.”

As per Merten and other cryptocurrency experts, a new bull run is brewing and once it receives an initial push, BTC will peak the chart and set a new high. Therefore, it is high time to invest in Bitcoin to reap massive profits.