The recent Bitcoin attempt to test $7,500 round level triggered a surge of forecasts and comments from crypto specialists predicting the digital asset to come back to 20K by the end of the year.
It’s true, the cryptocurrency has appreciated by 30% during the recent month. And it looks like the price may show another leap higher by the end of the year due to several factors.
First, there is growing interest from huge institutional investors. The rumored ETF’s approval by SEC plays a significant role in all the speculations. Besides, Google trends service evidences the rising search requests for “Bitcoin ETF” keywords.
During the recent month the number of requests grew three times, and already exceeded the search interest seen last August and December. Institutional and retail investors are already finding different ways of accessing the market either through Coinbase, or companies like Bitwise Asset Management.
Second, we should remember about the volatility of Bitcoin. Every time it loses 30-50% of the price, there are speculators ready to pick up it from the bottom and pull it up to historic highs. If we look at the recent two bullish waves, we will see Bitcoin appreciated 80% and 50% respectively after broad-based selloffs.
Third, there is a voice of crypto supporters. It is pointing to an inevitable expansion of blockchain technologies and cryptocurrencies to all field of our life. Spencer Bogart of Blockchain Capital says bitcoin is bound for higher price levels in the near future due to the exhaustion of pullback momentum. And any significant reason like trade wars may trigger the splash of interest to cryptocurrencies again.
Fourth, fundamental demand. While everybody is questioning the future of blockchain, it is already integrated into our lives. IBM company recently announces the launch of a financial blockchain "app store" that aims to make it easier for banks to access distributed ledger technology, while London School of Economics opens a blockchain course starting this year.
Taking into consideration all these factors, there are good chances to see a new wave of demand on Bitcoin late August – early September that will have all the potential to send cryptocurrency to $20,000 area by the year-end.