As the worldwide Coronavirus pandemic hit global economies, no market assets were left untouched, including major cryptocurrencies like Bitcoin. It appears that 2020 has taken some of the forecasted predictions of digital assets and made investors take notice. Unpredictable circumstances like the COVID-19 pandemic are hard to prepare for in the market, but surprisingly Bitcoin is faring well.
Bitcoin Price Movement in the 2nd Quarter
The 1st quarter of 2020 was not the best performing period for any cryptocurrency assets in the world. As people around the world battled a declining economy due to the COVID-19 pandemic, other markets suffered. Because of this, the price of Bitcoin wasn’t as many enthusiasts expected, but thankfully the 3rd halving event changed that.
During the 2nd quarter of 2020, Bitcoin hit their 3rd halving event, consequently helping aid the price movement. While crypto enthusiasts watched, the market prices increased, foreshadowing similar patterns from the 1st and 2nd halving events. As the 2nd quarter draws to a close, investors are hopeful that Bitcoin will reach the famed $10,000 mark. At the time of writing, the current market price is sitting at $9,711.25 USD, making cryptocurrency investors hopeful.
Factors Affecting Digital Assets
Numerous outside factors can affect how cryptocurrency assets perform in world markets. One of the most significant known factors lately is the Coronavirus scare, but with more examination, others are apparent.
• Current exchanges that hold Bitcoin: For example, the Coinbase exchange platform has shown issues keeping up to surges during Bitcoin’s price movements.
• Supply and demand: The less Bitcoin tokens available on the market, the higher the demand, altering market prices.
• Competition: How Bitcoin performs is relative to how other competing cryptocurrencies are moving in the market at the same time.
• Legalities: Cryptocurrencies are regulated differently in separate locales. Some countries allow digital currency purchases and trading, while others do not. This can have an impact on market prices.
What Will Bitcoin Accomplish in Q3?
Many crypto gurus are quick to jump on the Bitcoin bandwagon claiming that 2020 will be its big year. Historically, this popular digital asset has shown significant price movements after a halving event, which investors anticipate again now. But exploring changing markets like cryptocurrencies has shown static movement, so predictions like these are not guaranteed. Past trends are important aspects of finding patterns, but not a fool-proof way to invest in any asset.
While some enthusiasts are confident that it will surpass all highs in the remaining months of 2020, there are skeptics. While the general consensus that Bitcoin will rise in Q3, the amount of how high it will reach is debatable. Extremists are certain that upward prices of $75,000 are achievable, others are more conservative in their predictions, sticking to $10,000.
As the 2nd quarter of 2020 comes to a close, investors are crossing their fingers for a better 3rd quarter. Only time will tell exactly how ready Bitcoin is to reach heights in the remaining months of 2020. Cryptocurrency investors will be waiting and watching over the next weeks to see exactly how the market moves.