Bitcoin massively faltered in 2018, losing almost 80 percent of its value per individual unit. Bitcoin value dropped from £13,550 ($17,500) in January to £2,942 ($3,800) in December. But now financial analysts and titans of industry predict the next year will be meteoric for the cryptocurrency. One millionaire has even predicted a single unit of the currency could be worth £750,000 ($1 million) next year.
Tom Lee, managing partner and head of research at Fundstrat Global Advisors, said it is likely bitcoin is going to improve by 2020.
Talking on CNBC ‘Futures Now’ he said: “Last year was a terrible year for crypto, a massive bear market, and we published a piece this week just highlighting 11 signs that historically only take place in a bull market.
“So I think the evidence is mounting that there’s a bull market.”
According to Lee, three of these 11 signs have already happened, including a newly positive trend in trading volumes, a close above its 200-day trading average and a 60 to 70 percent increase in activity levels.
Mr Lee said a swing to the positive in Fundstrat’s bitcoin Misery Index and consensus among original bitcoin bulls the bottom has been put in for bitcoin mean the currency can keep going.
He also says there has been a “golden cross” for bitcoin – when the 50-day moving average overtakes the 200-day.
These catalysts, Mr Lee believes, are “likely” to drive the currency to an all-time high in 2020.
One eccentric entrepreneur has now declared the bitcoin currency will fly to dizzying new highs.
John McAfee, cybersecurity expert and creator of software company McAfee, claims bitcoin could be worth £750,000 ($1 million) per unit by 2020.
This bold statement follows on from an earlier assertion the currency would be worth £387,000 ($500,000) by 2020.
Not only does he believe the currency will reach the ambitious mark, he says it is “mathematically impossible”.
Mr McAfee is sticking to his prediction as analysts expect the currency to pick up.
Taking to Twitter, he said: “Come on people! It’s time to brush up your basic math skills and run some f***ing numbers!
“It is mathematically impossible for Bitcoin to be less than $1 mil by the end of 2020.
“Bitcoin is not an effing stock! You can’t apply stock paradigms or formulas and expect answers!”
At the time of writing, bitcoin is currently worth $5,126.94 according to Coin Desk.