Bitcoin (BTC) prices have been ranging around the $10,000 mark since halving 2020. This has led to much speculation as to where prices could go next. The truth is that with everything happening, Bitcoin (BTC) price could just shoot past $10,000. This could be due to several reasons. Meanwhile, it has been calculated that just around 0.7% of the U.S. stimulus money will be enough to buy the entire new Bitcoin supply in 2020.
At the moment of writing, BTC is trading for $9,761.
Bitcoin Price Could Cross $10,000
Bitcoin (BTC) price has just painted a golden cross candlestick chart pattern. This cross pattern is a signal that a major rally could be underway. Cryptocurrency traders have been expecting this pattern to push prices beyond $10,000. Prices though have remained above $9,500 for the past few days.
Golden crosses aren’t always followed by bullish rallies. The last golden cross in February was followed by a massive drop on March 13th. This though hasn’t dampened the hopes of traders and HODLers. Bitcoin halving events have always been followed by massive exponential increases in prices. This has allowed Bitcoin (BTC) prices to keep growing at an astronomical pace. This pace, however, has slowed since crypto winter.
We may see a rise in new phases with retreats to previous support levels. This has nothing to do with cryptocurrency markets. It has everything to do with the COVID-19 pandemic.
There is a general lack of confidence in business because of the coronavirus. Cryptocurrencies have only been marginally affected by this loss of confidence. This is due to their trustless nature. People trust the blockchain and not themselves.
U.S. Stimulus Money and Bitcoin Supply
Bitcoin’s phasic rise will be aided in part by the continuing stimulus. Governments are going to continue supporting the markets and the economy. This will continue as long as there is a pandemic.
It has been estimated that the miners will unlock 328,500 Bitcoins this year. At $10,000 per Bitcoin, this gives $3.285 billion. The last stimulus was $478 billion. Analysts estimate that only less than 1% of the total stimulus check payouts will buy the new Bitcoin supplies.
While this may work in theory, it does point out the effect of free government money flowing around the financial ecosystem. A bit of this and other forms of stimulus will end up in the Bitcoin markets.
These inflationary tendencies while seeming to stem the tide have implications. This is expected as economies recover once a vaccine is found.
The excess liquidity will find its way into assets both physical and digital. The reason for this is that things will have been going well without COVID-19. The fundamentals of many businesses are intact despite them being cash poor.
As the stay-at-home restrictions continue, many Millenials will read up cryptocurrencies. They will take some fundamental decisions in favor of cryptocurrencies. Bitcoin (BTC) price also stand to gain. As a force, they will turn the tide in favor of investment in the crypto-space as against traditional markets.
This will give the crypto-space the fresh inflows that it needs to push prices further up.
Then again, things could turn sideways. However, it doesn’t seem that way.