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Will Bitcoin go over $30k before the end of 2020?

Less than a month remains in 2020. The Bitcoin price has broken above $19,000 not long after it was really low earlier in the year and -- so far -- the BTC price has held steady above that important water mark. Will it use $10,000 as a base of support to go higher? Or crash through?

Answering that question depends on several factors that go beyond technical analysis. That’s why it’s imperative to keep up with reliable global and financial news. In this article we’ll take a look at several of those important factors that could show where Bitcoin is headed.

Global Money Printing

An eye opening article from USA Today states: “By the end of the year, the Fed is projected to have purchased $3.5 trillion in government securities with these newly created dollars, one of many tools it is using to help prop up the ailing economy during the COVID-19 pandemic, according to Oxford Economics.” Such money printing is pushing many investors to find the best way to buy bitcoin.

Why would they try Bitcoin? Simply supply and demand. The US Fed and other government organizations around the world have demonstrated time and again their willingness to fix any economic situation through increasing the supply of their fiat currency. Increasing supply without increasing demand can lead to dire economic fallout.

Investors have traditionally hedged against this by investing in gold and other investments with a more fixed rate of supply & demand. Bitcoin has risen in the last decade to prove itself as a constant, easily verified, store of value. The total supply of Bitcoin that will ever exist is 21 million.

Every ten minutes, literally like clockwork, a new batch of Bitcoin is minted — or “mined” — not by a centralized, human-backed authority but by a decentralized, purely mathematical algorithm.

Every four years that new batch is cut in half — a process called “halving” — until the year 2140.

This system gives Bitcoin a predictable supply and demand which investors can rely on. The last such halving took place this year in March. Bitcoin’s supply was cut from 12 BTC every ten minutes to 6.5 BTC every ten minutes. Supply decreased.

Demand, however, seemed to have risen or, at the very least, stayed the same. These factors pushed the price of 1 BTC to $13,000 — before market uncertainty put pressure downward back to $10,0000.

Global money printing also had an effect on Bitcoin price so far because with all the new dollars created, some of them are bound to have entered the Bitcoin market.

Forbes even wrote a piece outlining seven reasons US citizens might buy Bitcoin using their stimulus checks and CBS News reported that a second round of stimulus checks might be in the works through a $2.2 trillion US dollar HEROES Act. If the HEROES Act does pass and citizens do receive a second check — even more might consider buying a few bits and bytes of Bitcoin.

Since Bitcoin will have that fixed supply of 6.5 BTC every ten minutes until 2024 (when it will be cut in half again to 3.25), it’s easy to see the logic that increased demand with a fixed supply could push the price of Bitcoin above $20,000 and onwards to $30,000 and possibly beyond.

US Presidential Election

It’s undeniable that the US presidential election is affecting the US stock market and, in fact, markets across the globe. The U.S. is, after all, the world’s biggest economy.

A CNBC article summed it up by saying: “The vast majority of investors — 93% — believe the presidential race will affect the stock market, according to a recent survey from Hartford Funds, an asset manager. Moreover, 84% said they expect that will impact their investing habits.”

The fact also remains that the U.S. stock market has influenced Bitcoin’s price. Another Forbes article dives into the correlation between Bitcoin and U.S. stock prices. It lends credence to the theory that investors are treating Bitcoin like a tech stock. If the US stock market believes President-elect Joe Biden will increase dollar printing and more fiscal stimulus, then it might rally and thus send Bitcoin above $20,000.

However, if the US stock market believes that Biden will be hampered by the GOP and more stimulus packages are unlikely, then it might sink stocks and thus sink Bitcoin below it’s five digit support. Global factors such as money printing and the US situation in 2021 are impacting Bitcoin’s price and will continue to do so.

That’s why, again, it’s critical to keep up with global financial news on a daily basis.

Editorial Note: This is a sponsored article. Opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before taking any action based on information presented in this article.


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