According to the venture capital firm Blockchain Capital, Bitcoin (BTC) could reach a price of $20,000 in 2020. This is part of the bold predictions that the company made for the New Year that is arriving.
Could Bitcoin Reach $20,000 in 2020?
During 2018 and 2019, many enthusiasts expected Bitcoin to reach a new all-time high. However, it was not possible for the cryptocurrency to move upwards and surpass its previous price record.
In 2018, the market was in a bear trend that affected the whole industry and Bitcoin was far from hitting a new record. In 2019, Bitcoin started to recover part of the price that it lost and it was eventually able to hit $13,750 in June this year.
Blockchain Capital is making a bold prediction of Bitcoin reaching $20,000 next year and surpassing that level. That means that the most popular digital asset would have to grow by 273% from its current price if it wants to be traded around that value.
“Bitcoin price blows past all-time high,” Blockchain Capital wrote.
Among the bold predictions made by Blockchain Capital, we find that a cryptocurrency company could be acquired for more than $500 million and that value locked in Decentralized Finance (DeFi) could hit $5 billion.
These are clearly difficult things to predict but DeFi has been growing during the last year and the total value locked in the different DeFi applications was close to $680 million with Maker being the firm with the largest amount of USD locked on its network.
11) Lastly, our team shares some bold predictions for the New Year! pic.twitter.com/f7xyaYJSmP
— Blockchain Capital (@blockchaincap) December 12, 2019
Another prediction made by Blockchain Capital is that a federal judge could rule against the U.S. Securities and Exchange Commission (SEC) in a crypto-related case. The SEC has been controlling the cryptocurrency market trying to provide clarity on which tokens can be considered securities and which tokens cannot.
Moreover, they also consider that Bitcoin transactions could push fees to $100, making it very difficult for users to make Bitcoin transfers. Blockchain and Bitcoin developers have been working in the last few years in order for Bitcoin to be able to scale and process a larger number of transactions.
There are many exchanges that are already using SegWit addresses to reduce the fees and size of the transactions and the Lightning Network (LN) continues to be developed.