eToro, an investment platform for crypto assets and more, has shared a new bitcoin price prediction prior to the next halving expected in less than a week.
According to eToro analyst Simon Peters, after each halving, there has always been an increase in crypto asset prices and a growth in the number of investors, partly due to the fact that more and more media talk about it in connection with this event.
Bitcoin is currently worth about $9,000, but according to Peters, it could soon reach $20,000.
Moreover, Peters says Bitcoin will become so popular that in the near future cryptocurrencies will be included in pensions.
What is the Bitcoin halving?
In a few days, Bitcoin will undergo its third halving, which is the event that halves the reward of the miners and thereby, the rate at which new BTC are created: going from 12.5 BTC to 6.25 BTC.
For Peters, the halving may not only increase the value of BTC, as happened after the other two halvings, but it could also result in a new wave of investors who will decide to invest in crypto.
In general, many analysts believe that after this halving BTC will rise in value.
“During and after the first halving in 2012, the key investors were those already involved in the asset class. The bitcoin investor base was almost exclusively made up of those in the know; blockchain scientists and data programmers as well as libertarians interested in the idea of a monetary system outside of political influence and central bank control. Following the 2012 halving, bitcoin’s price went from $13 on the day to a peak of $230 within six months. But it was the 2016 halving that arguably provided a watershed moment for bitcoin as it led to the 2017/18 price rally, and subsequently brought the topic of crypto into public consciousness. After the halving in 2016, bitcoin exploded, both in terms of price and popularity. National newspapers were writing about bitcoin,” Peters continues. “Alongside the computer programmers and blockchain scientists were ordinary people, from management consultants to electricians and hairdressers. Suddenly bitcoin was on everyone’s lips”.
Peters also said he noticed a sharp increase in Bitcoin investors on eToro during the 2016 halving and therefore expects the same to happen:
“In 2017 and 2018, 70% of people came to eToro to invest in crypto. Since then, the crypto industry has matured, with talks of regulation, institutional investors entering the market and even central banks expressing an interest in the asset class. Combine this with another price rally expected after the 2020 halving, and we could be on the precipice of crypto becoming a mainstay of investors’ portfolios in the same way as stocks, bonds and commodities”.
“The price is currently hovering around the $9K mark and if it starts heading towards the $20K highs seen in the last rally, I expect even more people will want a slice of the action”.
Furthermore, according to eToro, if this happens, regulators around the world will start paying more attention to crypto assets, giving investors more confidence. The next two years could be very important for the industry to mature in this regard.
Finally, Peter concludes:
“Some investment companies that already have exposure to the asset class. As pension funds naturally respond to demand from their members, we may see a time where those demands include an allocation to cryptoassets”.