Kraken: $ 20K likely, will be different from 2017

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The new volatility report of the US-based Kraken, one of the largest stock exchanges in the world, has been published. According to the evaluations of the exchange, Bitcoin is more likely to rise to $ 20,000.

As it is known, Kraken publishes a report every month in which it evaluates the market conditions and important developments of the previous month. The October 2020 report is more about price movements and breaking the correlation of Bitcoin with the S&P 500 and other indices.

It was stated that Bitcoin, which reached the highest level of the last 33 months and succeeded in breaking the downward macro trend upward, is likely to climb parabolically and rise to the level of $ 20,000 in the coming months.

One of the surprising evaluations in Kraken’s report was about the decline in volatility. In the report, it was reported that although Bitcoin rose to $ 16,000, the annual volatility rate fell 20 percent to 35.5 percent, the lowest level in 19 months. Experts state that this is very important and means that the future bull run will be much healthier than it was in 2017.

Another important development demonstrated by the biggest cryptocurrency’s rise was its inverse correlation with stock markets and the dollar. After Bitcoin exceeded the $ 12,000 level, the S&P 500 and other indices could not follow it. Even after the news that the coronavirus pandemic vaccine was found, the weakness of the stock markets compared to Bitcoin was one of the biggest indicators of this. It is not overlooked that the US dollar index can no longer affect Bitcoin.

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There are comments that even the recent announcement of PayPal stating that all US users can buy, sell and store Bitcoin does not affect the Bitcoin price, which is currently traded at $ 16200.

Big companies are now buying Bitcoin

2020 was a year when big companies invested in Bitcoin. The Grayscale fund announced a record $ 1 billion cash flow to Bitcoin for Q3 of 2020. After the software firm MicroStrategy, whose Bitcoin value reached $ 425 million in August and September, Square made a purchase of $ 50 million, and payment giant PayPal opened cryptocurrencies, led by Bitcoin, shortly after this move.

In addition, Mode company, which is traded on the London Stock Exchange, also announced that it bought Bitcoin with 10 percent of its cash reserves.

The Kraken report also listed important days that concern cryptocurrencies such as the expiry dates of CME futures contracts, the latest developments in regulations, and the Bitcoin Cash fork.


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