The year 2020 for Bitcoin is primarily a year of halving, but not only it should be reflected in the price of the oldest cryptocurrency. Below you will find 4 reasons for the record bull market this year.
Political instability in the world
The year 2020 is one of the most perverse when it comes to politics. So far there has been a dispute on the international stage between the USA and Iran, which caused the order to neutralize General Soleimani. This caused a significant increase in the value of BTC, which may confirm that in times of crises Bitcoin is becoming a safe haven. In addition to the dispute with Iran, the US is conducting an economic war with China by exchanging mutual sanctions. There is a tense situation in Europe related to the United Kingdom Brexit. By the end of this year, the European Union must negotiate trade rules with the United Kingdom. Going further east remains North Korea, which constantly provokes the US and Japan. One can also get the impression that the fight for global leadership is ongoing and the situation is certainly not stable.
In addition to the lack of a clear political situation in 2020, we are struggling with the problems of the economic crisis. The prevailing COVID-19 pandemic has certainly contributed to this situation. The closure and isolation of each country has greatly weakened all economies. This is confirmed by numerous indicators, PMI indices, and the level of unemployment. In this situation, gold usually won the favor of investors. It is so this time, the value of the ore has increased significantly, and also with it another completely new safe haven - digital gold - bitcoin.
In May, the miners' prize was split from 12.5 BTC to 6.25 BTC on the excavated block. Thanks to this, Bitcoin inflation is controlled and its current value is 1.8%. If you look at the stories, so far halving has taken place twice - in 2012 and 2016. In both cases, after about 12 months from this date, the BTC rate increased significantly. To date, looking at the historical structures, the oldest cryptocurrency behaves very much like it did after halving in 2016. Then a year later in 2017, the BTC price was the highest in history. If you believe and history and calculations, by the end of 2020, the price of the oldest cryptocurrency should be 50,000 USD.
Bitcoin's Hash Rate
This factor is a general measure of computing power made available by miners in the Bitcoin network. The higher the Hash Rate, the more secure the network is, this is an indicator of the condition of the Bitcoin Blockchain network. Observing the correlation between Hash Rate and BTC price so far, after a strong increase in Hash Rate followed a strong increase in the price of Bitcoin. It is worth noting that ATH Hash Rate took place in March 2020. So if you believe the correlation we will face a sharp increase in the value of BTC. Apart from this and given the raw facts themselves, the Hash Rate value in March 123 TH / s was over 10 times higher than in 2017 when the price of Bitcoin was ATH. This means that miners are constantly buying new equipment and joining the network, believing that despite the distribution of the prize, digging for BTC will be profitable and profitable for them.