- Bob Loukas believes that the “bull narrative” will push Bitcoin to an all-time high level.
- It is predicted that as investors liquidate their positions in losing equities, they will turn to stable assets like Bitcoin.
Popular financial analyst Bob Loukas has made his Bitcoin predictions for the upcoming year. He tweeted:
Bitcoin closing near the $7k area were my thoughts 12 months ago in my first video.
If #bitcoin bull narrative remains true (which I believe), we should see $BTC begin turn higher over next 2 months. Then a solid steady climb towards ATH's by the end of 2020. Exceed in 2021.
The “bull narrative” that Loukas refers to is an important factor in much of the price prediction data. Many industry experts believe that Bitcoin will eventually grow in market cap to extremes. This position holds that the global movement of central banks will create economic stagnation with a strong inflation. As investors liquidate positions in losing equities, they will turn to stable assets, which are unaffected by inflation. Bitcoin is one of these assets. A narrative like this sees a consistent growth moving forward. Despite some periods of loss, the overall movement is seen to be positive. The movement is largely driven by adoption.
However, there are many counterpoints to this. Firstly, the actual use cases for Bitcoin may be more limited than previously estimated. When transaction fees increase, the cost for small payments becomes too great to justify. Secondly, the potential for government controls is substantial. The need to exercise control over financial transactions may force governments to limit the usage of Bitcoin. Finally, the concern that the market will turn lower first is a real possibility.
Loukas hedged his statements with the potential for bearish trends as well. He said:
In the absolute bear case, after a 6-month downtrend, expect a counter-trend move towards $10k-$11k before another big downtrend. If you think you will FOMO buy $10k then buy it now instead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.