The new year sees a resurgence of hope in the cryptocurrency market. Of course, many analysts give reasons why BTC could be worth many dollars by the end of 2020. However, why would this be the case? Let's consider why Bitcoin's exchange rate should rise at all. Halving This reason falls in every cryptocurrency price discussion. Why? Well, a reduction in the supply of new Bitcoins on the market combined with increasing demand even has to lead to a jump in the exchange rate. At least until 2017, that's how it worked. Will it be different now? Probably not, although we have many more cryptocurrencies and tokens on the market today than we did when the last bubble was booming. However, we can assume that halving will do its job and have at least a psychological effect. People will buy BTC more willingly because it has "previously grown". Geopolitics The cryptocurrency community is people who are not fond of politicians, officials and authorities and their main tool - fiat money. Now, however, politics may be affecting the BTC exchange rate. As of last Thursday, we are really close to a new war in the Middle East. Donald Trump is seeking to short circuit Iran. Interestingly, while stock prices have started to fall as a result of the assassination of an Iranian general, as all the media have been talking about for the past few days, safe havens, i.e. gold, silver, bonds and... well, cryptocurrencies too, have strengthened. "Increased geopolitical risk has caused both gold and Bitcoins to become more expensive, but for different reasons. Gold is bought by investors as a safe haven. Bitcoin is being bought by speculators betting that investors will buy it as a safe haven." - Peter Schiff believes. Economy Economies today are starting to contract, putting pressure on banks and fiat-based financial systems. The Fed is printing more dollars and that is unlikely to change in 2020. The European Central Bank is doing the same. So economic pressures are pushing investors toward safe-haven assets. These are bullion, but - as we can see - cryptocurrencies are slowly starting to become them. If inflation hits various currencies harder (e.g. through a spike in oil prices), some of the more informed investors will start buying (or are already doing so) digital assets. At some point, others will join them as well, somewhat as part of the so-called sheepish rush. In any case, cryptocurrency prices will rise. You can always check the current exchange rate of bitcoin and other cryptocurrencies at bitcoin.co.uk under the bitcoin exchange rate and cryptocurrency exchange rate tabs. Places where you can buy Bitcoin and other cryptocurrencies include BitBay.net cryptocurrency exchange. If you don't have an account on BitBay yet, this article will show you how you can create one efficiently: LINK. Tags bitcoin exchange rate bitcoin price bitcoin exchange rate btc exchange rate
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