We all remember The Bitcoin Crash of 2018. What preceded that crash was the most spectacular growth in Bitcoin's history. The price grew by 2000% in 2017 alone. From about 1000 USD to start the year, Bitcoin rose to its all-time high price of nearly 20,000 USD by year’s end. This incredible surge made overnight millionaires out of the earliest Bitcoin adopters. Celebrations didn’t last for very long, though. Because as we know, Bitcoin and the entire crypto market infamously crashed in early 2018.
Now, if you’re wondering whether the market can ever climb back up, the answer is yes. When? Much sooner than you might think.
First, let’s look at the history of Bitcoin and the crypto market. A Bitcoin in 2011 was worth 1 USD, and that was after several years of tenuous development. The first Bitcoin bull run took it to a high of 31 USD before crashing back to a single-digit value. It took two years before Bitcoin found its momentum again. The price reached 1000 USD by the end of 2013, then halved in value by the following year. Values played from 200-800 USD until 2017, when Bitcoin entered mainstream consciousness.
The key takeaway here is that the crypto market operates in patterns. Much like any other asset class, like stocks or gold, we can make educated predictions on Bitcoin's value by looking at its history. As the data shows, each time Bitcoin's price rose to a high, a market correction followed. The value would then be relatively stable for a couple of years until the next bull run. Of course, this is never guaranteed. Investments come with inherent risk. But patterns exist for a reason, and it would be smarter to bet on a pattern that has worked before than to bet against it.
This brings us now to 2020. Bitcoin has dropped to as low as 3600 USD since it reached its all-time high, but now it's ripe for another bull run. According to several top analysts, we may already be in a bull market. If you look at the charts, you'll see that Bitcoin has been climbing back steadily this year. It may only be a matter of time until Bitcoin reaches a tipping point.
Now, there are some wild predictions out there. Like businessman and crypto advocate John McAfee, who maintains that Bitcoin will reach 1 million USD in 2020. However, we think a more conservative prediction would be Bitcoin growing past 20,000 USD by the end of 2020. This means that Bitcoin would reach a new-all time high against the US dollar. Beyond that, we can be more optimistic. If the run continues past 2020, the price of Bitcoin may reach 60,000 USD before the market correction comes.
And then the cycle will continue. That's part of what makes cryptocurrencies exciting. The market is alive, and we each play a part in how it shapes up. If we really are in a bull market, which seems likely, then now is as good a time as any to invest in Bitcoin.
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