Bitcoin is very likely to reach $ 20,000

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Kraken’s new report states that it seems likely that Bitcoin will increase to $ 20,000. Kraken publishes a volatility report each month discussing the market situation of the last month and the most important announcements. The implications of the latest report in October 2020 were mostly about Bitcoin’s price action and the break in correlation with the S&P 500 and other indices. When Bitcoin rose to a 33-month high, it rose higher from a 3-year downward price movement and tends to be parabolic after exiting a macro bearish trend, with a probability of rising to $ 20,000 in the coming months.

Volatility Decreased

One surprising fact in Kraken’s report is the decline in volatility. Despite the apparent increase in Bitcoin to $ 16,000, annual volatility declined 20% to 35.5%, a 19-month low. This is remarkable and shows that the current bull rally is much healthier than it was in 2017.

Another important factor in favor of Bitcoin is the loss of correlations with the stock market and the inverse correlation with the dollar. Although some remained there, after the Bitcoin price exceeded $ 12,000, the S&P 500 and other indices could not follow. Even after the latest news about a potential vaccine, the stock market remains much weaker than Bitcoin. The US dollar index also does not seem to affect Bitcoin anymore.

PayPal recently announced that US customers can start using the platform to buy, sell, and hold cryptocurrencies. Bitcoin is trading at $ 16,150 but has not yet reacted to the announcement.

Big Companies Buying Bitcoin

During 2020, several multi-million companies announced that they were purchasing large amounts of Bitcoin. Grayscale reported that there were $ 1 billion worth of Bitcoin inflows every three months. Square Inc also announced that it purchased $ 50 million worth of Bitcoin in October. After a short while, PayPal finally approved the new service to enable users to buy cryptocurrencies. Additionally, Mod, listed on the London Stock Exchange, announced that it allocates up to 10% of its cash reserves to Bitcoin.

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Kraken also provided a chart with the most notable events for the Bitcoin and cryptocurrency market, such as CME Futures expiry dates and other policy and regulatory events.


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