The price of Bitcoin will see a surge at the end of 2020 similar to the one experienced in late 2017, Nigel Green, CEO of financial advisory organisation deVere Group, has said.
This is set to be buoyed, he said, by growing interest of mainstream investors. Among these is Square, owned by Twitter CEO Jack Dorsey, which this week converted 1% of its cash reserves into Bitcoin.
“There’s been something of an avalanche of interest in Bitcoin in recent weeks from household-name investors,” said Green.
“Investor activity is picking up considerably with various on-chain metrics and ongoing – and heightening – global political, economic and social turbulence suggesting that there will be a price surge before the end of the year.”
Amid the global recession and ongoing turbulence, Bitcoin is increasingly being seen as a safe haven investment akin to gold.
“Like gold, Bitcoin can be expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses,” he said.
“Investors will increase exposure to decentralised, non-sovereign, secure digital currencies, such as Bitcoin, to help shield them from the potential issues in traditional markets”.
Investors urged to expect Bitcoin price rise in 2020
Green has in particular advised investors to be on the look out for a similar price surge event to 2017, when Bitcoin briefly hit $19,891 in December of that year.
It quickly dropped value over the following months, and by mid-2018 was worth around a quarter of the record amount. However, the Bitcoin price has once again been gaining momentum since mid-2019, and in 2020 has already reached highs of over $12,000.
“There’s a growing sense that we’re set to experience a mini-boom similar to that at the end of 2017.,2 he said.
“Prices are yet to catch-up with investor interest – but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run-up to the end of 2020.”