‘Look to $20,000, not $12,000’

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October 29 2020
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Bitcoin investors should look at the supportive regulatory environment as well as some economic dangers which should be a tailwind for bitcoin’s price, two experts have said.

Bitcoin has seen a lot of attention over the last week, with investors seeing the alternative currency smash through the much-feted US$12,000 ($17,000) price barrier.

However, investors should not be held back by a new price high, with eToro’s analyst David Derhy urging investors to look forward instead of backwards.

“The current run could simply push through all the way to US$14,000,” Mr Derhy said.

“If that is the case, then the next level from a technical and fundamental perspective would be US$20,000.”

The analyst pointed to a friendly environment, which could continue to boost the price of the coin.

“With the US election coming up next month, further economic stimulus from the government is going to happen even if the size of that stimulus is still up for discussion. I am of the view that we won’t see a drop back down below $12,000 for a while yet,” Mr Derhy said.

With the size and shape of the government stimulus dependent on who wins the election, eToro’s analyst Simon Peters argued that both sides will support the economy.

“Both sides have also agreed for another stimulus check of $1,200 to every citizen, but the rest will most likely go towards preserving jobs,” Mr Peters said.

“If this is the case, then we may also see an uptick of inflation, another important aspect of Satoshi Nakamoto’s view of modern economies that drove him/her/them to create bitcoin.”

“We’re currently in a world of positive price movement, extensive fiscal stimulus, major central banks discussing digital currencies and a range of altcoins successfully implementing logistical upgrades. It’s an exciting time to be a cryptoasset investor.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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