Last January 11, Bitcoin successfully bounced back, which gained $8,000 decisively. Through its latest moves combined with key developments, it’s no surprise why top analysts claim that BTC can gain 100% returns in 2020.
According to top market research company Fundstrat Global Advisors believes that Bitcoin has a big chance of delivering 100% returns to crypto investors this year. Not only that, it may also rise in the first five months until the block reward halving of May.
More Than 100% Bitcoin, Fundstrat Expects
Fundstrat Global Advisors, a New York-based sector research and market strategy research firm, finally released its this year’s Crypto Outlook.
Currently, the full report claiming that BTC can gain 100% in 2020 is only available to the clients of the firm. Fundstrat resident crypto bull Thomas Lee, however, released an excerpt of the report on Twitter.
An excerpt of the same states that “For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”
Key Reasons Why Bitcoin Has 100% Probability of 100% Gain in 2020
As emphasized by Fundstrat, BTC has a strong probability to gain >100% in 2020 because of several factors. According to the market research firm, they consider three key factors to support their report.
First, they looked to the “halvening” or “halving” as the block reward of BTC gets divided in half. Then, this will result to 50% decrease in the leading cryptocurrency’s inflation rate. This event will take place in 2020. Besides, pseudonymous quant PlanB created a price model suggesting that the fair value of Bitccoin will rise up to $50,000 following the halving in May 2020.
Next factor is the geographical risk. According to the firm, this factor can be an advantage for BTC. Due to the ongoing conflicts between the U.S. and Iran, the U.S. and China, and any other spats that take place, Bitcoin can possibly start proving itself to be a non-sovereign store of value.
Lastly, Fundstrat considered the 2020 elections. Although this factor isn’t long-drawn-out upon, there are a few candidates who are known to be more cryptocurrency-friendly compared to others, like Andrew Yang.
Another Market Analyst Expects the Same Fate for Bitcoin This Year
Fundstrat is not the only extreme bull on Bitcoin this year as well as predicts for the crypto in gaining 100%.
Based on Financial Survialism which called BTC’s rally to the $8,000 in the previous reports, the technicals suggest that a great bull trend is forming. The company looked to some technicals, including the Lucid Stop and Revearsal’s bullish candle since July 2019, the Average Directional Index’s bullish crossover since March 2019, and the one-week BTC relative strength index’s preparation to test 50.
The analyst further stated that crypto could retest the $20,000 high by July 2020.