Will Bitcoin hit $20k before the end of 2020?

Looks like Bitcoin is making a full comeback. The world’s largest and best-known cryptocurrency has been rallying lately, with tremendous momentum, reminiscent of the great crypto bull run of 2017–18. At the time of writing, the crypto has pushed above the $18,000 barrier. The last time that happened, in late 2017, it finished at an all-time high of nearly $20,000 ― and then crashed 70%.

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The Popular Vote

One thing that has some crypto enthusiasts and analysts scratching their heads is the fact that, unlike two years ago, there is no massive surge in search volumes for Bitcoin and crypto-related terms.

While this may come as a surprise, there are quite a few reasonable explanations:

  • Bitcoin is already well-known: 2017 was the breakout year for Bitcoin. While it was not completely anonymous, as it was (and still is) the world’s first and largest cryptocurrency, it was one of the lesser-known financial assets. However, its tremendous price movements back then put it in the spotlight and it became extremely popular. This may be one reason why people are not searching for it anymore ― they already know it and follow it.
  • Bitcoin has nothing to do with the coronavirus: As impressive as this recent price surge is, it comes at a time when many investors and traders are focusing on coronavirus-related news. New vaccines, the implementation and removal of lockdown measures by various governments and the price of oil rising and falling are more attention-grabbing at the moment.
  • Once bitten, twice shy: Two or three years ago, there was a digital gold rush towards Bitcoin and other crypto. Some people poured their life savings into Bitcoin, thinking they could double or triple their money, only to suffer heavy losses when the crypto market crashed after the rally. These people may be extremely wary of the mere mention of crypto, and would definitely not actively search for it.

Bitcoin in 2020

As mentioned above, crypto has not been the centre of attention in 2020. That title goes to Covid-19. The global pandemic has crippled entire industries, forced billions to work from home and so far, has claimed the lives of more than 1.3 million people. However, while this terrible plague has been raging around the world, Bitcoin has been on the rise.

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It sounds a little unrealistic, but Bitcoin actually started the year at just over $7,000. That means that over the past 11 months, it has risen in value by a factor of more than 2.5. Moreover, right around the time that the World Health Organisation (WHO) declared the coronavirus a global pandemic, Bitcoin sank to a yearly low of around $4,700(!).  It has nearly quadrupled in value since then.

Now, Bitcoin is skyrocketing. Price levels seen in recent days have not been seen before or since late 2017. While some analysts are already eyeing the $20k mark (and who knows, maybe by the time this article is published, it will have already hit it), and say that as soon as retail investors join the party, the price could climb higher, others warn of a slingshot effect that could lead to crashes as harsh as those seen in early 2018.

Naturally, there is no way of knowing where Bitcoin will go next. Will we see new and spectacular all-time highs? Or will we see a bearish correction? Only time will tell. One thing is certain, though, despite being less googled than before, Bitcoin is back in the spotlight.

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