According to a recent analysis, the price of bitcoin could approach the price of $20,000 by the end of 2020.
This is the June 2020 edition of the Crypto Research Report, which shows the results of the attempt to model the price of BTC with Irving Fisher’s equation.
It is the so-called “equation of exchange”, developed in the last century by Irving Fisher, and is based on the concept that the more often a currency changes hands, the less value it has, as money tends to change hands more frequently when people believe it may lose value.
The analysis is quite complex, but the end result is that starting from a price of about $9,200 at the end of June 2020, the price of bitcoin could reach over $19,000 at the end of the year.
Moreover, still using the same model, it is estimated that it could rise to over $340,000 by the end of 2025, and then reach almost $400,000 by 2030.
The analysis also takes into account the price of other cryptocurrencies, such as Ether (ETH), which, starting from about $200 in June 2020, could close the year at more than $300, and then rise to $3,500 by 2025.
The most sensational growth, however, would be that of Litecoin (LTC), which could rise from $44 to $80 by the end of the year, and then rise to over $1,200 by 2025, and over $2,200 by 2030.
Strong performances are also expected for Bitcoin Cash (BCH) and Stellar Lumens (XLM).
The authors of the report also stated that bitcoin is still at the beginning of its adoption curve, with a price of $7,200 at the end of 2019 that would suggest a penetration of no more than 0.44% of reachable markets.
Should this penetration rate reach 10%, its price would reach almost $400,000.
In total, the market capitalization of all cryptocurrencies could grow to a remarkable $212 trillion from the current $260 billion.
This is obviously not the only forecast that has been made about the price of bitcoin at the end of 2020, but many of the other forecasts have not been made by analyzing the fundamentals of this cryptocurrency, like the speed at which it is traded.
For instance, some forecasts that are based on the technical analysis of the price trend claim that the price may not exceed $12,000, while there are also other ones that claim that in the coming months the price may fall even significantly due to the problems that may affect the financial markets again.
At the beginning of the year, when the existence of the Covid19 epidemic was unknown, some had even hypothesized that the price could exceed $50,000 by December, but in light of what has happened to the financial markets since March, these hyper-bullish hypotheses have thinned out.
It should be noted, however, that an analysis that takes into account the fundamentals of the use of BTCs is more robust than one that merely analyses the price trend, to the extent that those that merely do so are often unable to give long-term indications.