Story by: Yogita Khatri
The price of bitcoin (BTC) is set to increase this year, according to a Bloomberg analyst.
Mike McGlone, a senior commodity strategist for Bloomberg Intelligence, has said that the two factors – bitcoin’s fixed supply (21 million coins) and increasing adoption – are likely to support the world’s largest cryptocurrency’s appreciation in 2020.
“Bitcoin is winning the adoption race, notably as a store-of-value in an environment that favors independent quasi-currencies,” said McGlone, adding: “In 2020, Bitcoin supply should increase about 2.5%, an all-time low on the way to zero growth.”
Increasing gold prices are also likely to favor bitcoin’s price this year, according to McGlone. “Gold prices will keep climbing in 2020 and so should Bitcoin,” said the senior analyst.
Bitcoin’s volatility should also continue to decline, according to McGlone, who sees $6,000 as bitcoin’s key support level and $10,000 as a resistance level this year.
The price of bitcoin, on the other hand, is more likely to “edge toward 2019’s high of about $14,000, though they probably won’t stay below the trough at just above $3,300,” said McGlone, concluding:
“Bitcoin should again outshine most crypto assets in 2020 as the unique and appreciating digital version of gold.”