Bitcoin’s year-to-date high is $13,796, and the market sentiment is that the cryptocurrency can still take down its all-time high of $20,000. However, Skew, a market research firm thinks otherwise. According to Skew, the chances of Bitcoin surpassing its all-time-high in 2019 is very low.
Bitcoin Has a Low Probability of Revisiting $20,000 in 2019
Skew believes that the probability of Bitcoin being priced over $20,000 by 2019’s end is low. Also, there is only a seven percent chance for the cryptocurrency to trade above its all-time high in the current year, and this probability is declining with time.
On the contrary, the market research firm noted that October could be the most remarkable month for Bitcoin. The latter was tied to the Bitcoin ETF applications that will be reviewed by the U.S. Securities and Exchange Commission (SEC) in October. Moreover, the SEC is bound to make a decision in October, and if the ETFs are approved, it could help to spike Bitcoin’s price.
High Expectations for Bitcoin to Hit $20,000
The $20,000 price zone is quite significant for Bitcoin since it is the highest it has traded at is since its launch in 2009. After breaking its $10,000 psychological level in June this year, there were high expectations that the virtual asset will spike and be priced higher from its all-time high in December 2017.
Nonetheless, Bitcoin’s performance in the past few months has created uncertainty in the crypto market. For instance, Bitcoin surged to its year-to-date high on June 26, 2019, but declined to the $10,000 weeks later. As at press time, the top cryptocurrency is trading around the $9,500 zone and could even dip lower.
Bakkt’s Custodial Service Could Spike Bitcoin’s Price
Without giving Bitcoin’s current price much thought, the events building up in the crypto space could put Skew’s prediction to naught. Bakkt announced on August 26, 2019, that its customers can store Bitcoin on its qualified custodian platform from September 6, 2019. The custodial service could see institutional investors troop into the market, which could surge Bitcoin above $20,000 this year.
Similarly, the Portuguese Tax Authority recently clarified that taxes will not be levied on Bitcoin transactions and payments. Thus, news of this nature can potentially increase Bitcoin’s adoption in the coming weeks. Changpeng Zhao, CEO of Binance cryptocurrency exchange, also remarked that Portugal’s stance will make the country attractive for people in countries that are looking to ban Bitcoin.
On the other hand, some members of the crypto space seem undeterred by Bitcoin’s current price. John McAfee, the founder of McAfee Associates, recently said: “Bitcoin under $9,500. If you are panicking, you are a fool.” On July 14, 2019, the Bitcoin proponent had opined that Bitcoin will hit $1 million by 2020’s end.