{"id":420815,"date":"2020-04-15T14:00:20","date_gmt":"2020-04-15T14:00:20","guid":{"rendered":"https:\/\/ktsl888.com\/?p=420815"},"modified":"2024-06-11T10:33:39","modified_gmt":"2024-06-11T10:33:39","slug":"bitcoin-could-quickly-breach-20000-high-due-to-this-mining-factor","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/bitcoin-could-quickly-breach-20000-high-due-to-this-mining-factor\/","title":{"rendered":"Bitcoin Could “Quickly” Breach $20,000 High Due to This Mining Factor"},"content":{"rendered":"

Ever since Bitcoin<\/a> pulled back from the $20,000 highs in December 2017, investors in the cryptocurrency space have been wondering when again BTC would be at new highs. According to a number of analysts, a $20,000 BTC price is actually likely this year, or at least in the coming 12 months.<\/p>\n

One trader recently cited a simple supply-demand dynamic to back his point.<\/p>\n

Related Reading: $1 Billion Worth of Bitcoin Moved For Less Than a Cup of Coffee<\/a><\/h6>\n

How Bitcoin Could Hit $20,000 “Quickly This Year”: Analyst<\/h2>\n

Bitcoin trader Theta Seek recently shared<\/a> that according to his analysis, using data from Chainalysis, specific BTC miners have been “silently accumulating coins over the past six months.”<\/p>\n

The data below shows this, with it indicating that the wallet address of F2Pool, a leading mining pool, has started to send fewer coins that it has mined. This is decisively different from the trend all throughout 2018 to late-2019, which saw the pool sell many more coins that it took in.<\/p>\n

 <\/p>\n

Theta expects this trend to continue, saying that they believe miners will “continue to do so until well after the halving,” which could result in prices rapidly breaching the $20,000 all-time high “quickly this year from the supply shock.”<\/p>\n

As an important note, some have suggested that miners accumulating coins may actually be a bearish sign as opposed to bullish.\u00a0<\/a><\/p>\n

According to Charlie Morris, the founder of ByteTree, a crypto analytics and data company, miners hoarding Bitcoin has \u201chistorically coincided with negative returns and reflects a weaker market bid\u201d because \u201cthey want to protect the market which is too soft to sell into.\u201d<\/p>\n

Morris backed up this assertion with this\u00a0linked chart,<\/a>\u00a0which shows that whenever miners sell less than they mine, Bitcoin returns have been poor, with these periods actually accounting for much of the crypto\u2019s losses.<\/p>\n

Central Banks Could Play a Role<\/h2>\n

As hinted at, it isn’t only Theta that sees such a strong rally playing out by year-end.<\/p>\n

Speaking to CNBC last week, Mike Novogratz \u2014 CEO of Galaxy Digital and a former partner at Goldman Sachs \u2014 said that he remains certain Bitcoin will pass $12,000 in October, then eclipse its previous all-time high of $20,000 by the end of the year.<\/a> He put so much faith in this prediction that he quipped:<\/p>\n

\u201cThis is the year of Bitcoin and if it doesn\u2019t go up now by the end of the year, I might just hang my spurs.\u201d<\/p><\/blockquote>\n

Although Novogratz is also bullish on how the Bitcoin halving could boost the supply-demand dynamic in favor of bulls, he mainly believes in the $20,000 prediction due to two factors:<\/p>\n