Well-known Bitcoin influencer Tone Vays told IGTV’s Victoria Scholar that March’s market capitulation was the catalyst for the cryptocurrency’s recent surge.
He says it has been fuelling a huge appetite for ‘anything other than government paper’ and believes bitcoin is a true safe haven. In terms of levels, he thinks it will remain above $10,000 for the rest of the year, break $20,000 next year with a possibility that it will reach $45,000 to 50,000 in 2021.
Bitcoin sees gains of 140% since equities hit March lows
At the beginning of the coronavirus crisis, global equities suffered a signifcant hit as investors reacted to governments around the world imposing lockdown restrictions on people and businesses.
As a result, major indices like the FTSE 100, DAX and S&P 500 all lost more than 30% of their value to the Covid-19 outbreak.
‘The big crash is what I was waiting for this year to finally reset bitcoin,’ Vays told IGTV.
In his bitcoin price outlook for 2020, he predicted that the crypto coin would drop to around $5000 as a result of the big ‘halving event’ in May, whereby the reward for mining new blocks is halved, meaning miners receive 50% fewer BTC for verifying transactions.
The second thing Vays forecasted was that bitcoin would struggle to break above $10,000, with the cryptocurrency hovering around, but below, that benchmark for the remainder of 2020.
However, the digital currency has already hit a high of $12,399 earlier in August and looks unlikely to fall below £10,000 anytime soon, he said.
Sovereign debt woes will help ‘safe haven’ bitcoin soar, says Tone Vays
Earlier this year, Dan Popescu, Investment Research Consultant and gold and silver analyst, spoke with IGTV’s Jeremy Naylor to discuss his forecast for gold. In the interview Popescu warned that the global economy faces a potential reset of the monetary system.
Popescu believes that in the next five years gold prices could break above $5000 due to the coronavirus pandemic and other macroeconomic factors having ‘created an explosion of government debt’.
This incredible intervention by central banks will devalue the US dollar, euro and sterling, which in turn will help drive up the price of gold in the coming years, he added.
Echoing similar sentiments, Vays believes that bitcoin, despite its increased volatility, is increasingly viewed by investors as a safe haven asset.
A company called Micro Strategies, according to Vays, recently invested $250 million into bitcoin as a ‘long-term investment’ because they felt it was the best place for their money given the current climate.
How to trade cryptocurrencies with IG
Looking to trade Bitcoin and other cryptocurrencies? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:
- Create an IG trading account or log in to your existing account
- Enter ‘Bitcoin’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade