For everyone waiting with bated breath for bitcoin to suddenly rise from the ashes and experience a solid price bump, here’s a bit of good news.
Bitcoin May Incur a Massive Spike Next Year
One source is reporting that bitcoin futures are doing extraordinarily well. So well, in fact, that their prices are expanding even while the primary asset is falling deeper into the $7,000 range. Yes, it has managed to expand by another $200 over the past few days, but for the most part, bitcoin is still considerably lower than where it was just over a month ago.
Still, futures continue to defy the odds of its parent currency, which suggests that bitcoin is likely to head deeper into bullish territory next year.
From late November to early December, the price of bitcoin futures contracts rose by approximately 30 percent, while the asset dropped in price by a whopping six percent. Analysts at Arcane Research explained:
The premium rates on bitcoin March 2020 contracts have been increasing, although the bitcoin price has decreased. This is not a common observation… This clearly shows that traders anticipate changes in the bitcoin price. To put this in perspective, gold options for June 2020 trade with an implied volatility of 11.5 percent.
The analysts are referring to the idea that bitcoin’s volatility is expected to jump beyond 70 percent by the time summer of next year rolls along. In December 2019, the volatility of bitcoin’s price currently stands at around 55 percent.
2020 is ultimately looking like it will be a very positive year for the world’s number one form of crypto. For one thing, the next major halving is expected to come about in May, which means that the price is looking to potentially spike. Whenever a halving has occurred in the past, analysts have noted major bullish changes in BTC’s price, and several believe this time around will be no different.
In addition, 2020 is an election year. As we all remember, 2016 – the year Donald Trump ascended to the White House in Washington D.C. – saw bitcoin spike beyond the $1,000 mark for the first time in around three years. From there, the currency entered a heavily bullish phase that saw it expand beyond the $20,000 line about a year later.
It Will Be a Time of Major Change
With 2020 setting the stage for another political showdown, many are wondering if perhaps the number one cryptocurrency by market cap will experience another major surge that could take its value “to infinity and beyond,” which for all we know, could potentially expand into 2021 as it did following the previous election.
Either way, the next 12 months are looking to be very big for bitcoin, though some industry experts and traders are arguing that the halving may have not discernable effect on the currency’s price.
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