The cryptocurrency market seems to have recovered after the drop it experienced a few days ago. Indeed, Bitcoin (BTC) is currently being traded above $8,000 and other digital assets have also frown during the last few hours. According to Christopher Vecchio, a senior currency strategist, Bitcoin could eventually return to $20,000.
Could Bitcoin Grow And Reach $20,000?
The most popular digital asset could soon come back to its previous all-time high. This is according to the senior currency strategist, Christopher Vecchio, although it is going to be a challenging thing, if the yuan continues to weaken, Bitcoin could touch $20,000.
The comments come in a moment in which the trade tension between the United States and China continue to grow. Things are getting difficult for both countries and the trade talks seem not to have an immediate effect on the relation between these two powerful countries.
Currently, the Chinese yuan is being affected by a devaluation that could harm investors in the Asia country. There could be many individuals ready to leave China in case the situation gets worse. Moreover, there are several Chinese companies that have debts denominated in US dollars, which is not good for the country’s sovereignty.
Several US companies are also being affected by the current trade war and the S&P 500 is also down around three percent since this month started. Vecchio stated that in an environment where the financial system looks like it is potentially at risk, investors and individuals search for alternative ways to avoid capital controls.
Mr. Vecchio is just one of the many investors in the market that believe that Bitcoin is going to be reaching the same values it had back in December 2017. Oliver Isaacs, another recognized Bitcoin analyst, said that the digital currency has the potential to hit $25,000 by the end of 2019 or early 2020. Some of the drivers for the digital currency include geopolitics, regulations and technology.
Although there are growing tensions between China and the United States, Bitcoin has to prove that it works as a safe haven or as a hedge during periods of crisis.
Currently, Bitcoin is being traded just above $8,000 and it has a market capitalization of $142 billion. In the last 24 hours, the virtual currency registered a price increase of over 4.05% according to data provided by CoinMarketCap.
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