Crypto analyst Tone Vays is laying out his predictions for the global economy and Bitcoin in the year ahead.
In a new ask-me-anything hosted by ChainTalk, Vays says governments will take wide-ranging actions to mitigate the damage to economic growth triggered by the coronavirus. He believes lawmakers will raise taxes to make up for lost revenue from businesses that have to close their doors.
In addition, he thinks countries may be forced to stop using the euro as their national currency or decide to abandon it on their own. Vays also expects governments to tighten their grip on the movement of money, as Australia’s central bank did last year to combat capital flight and rising inflation.
“All of this will drive people into Bitcoin. And the halving is coming in a few weeks so once Bitcoin’s daily supply to the miners gets cut in half, there will be a lot less selling pressure.”
In the year ahead, Vays expects an increasing number of investors to view Bitcoin as an alternative, uncorrelated asset that can act as a hedge on the global economy. As for 2020, Vays is bullish, but warns the stock market may limit how far Bitcoin’s price can move.
“I believe that the worst for Bitcoin is over. As for the stock market, I’m not so sure. I believe over the 12 months people will start to consider Bitcoin a safe-haven asset that could also bring them a better return…
I can see Bitcoin rising to as high as $8,500-9,000 on this run up over the next month or two, after that I think it will pull back down but I don’t see Bitcoin falling under $5,000 again. If the economy continues to be poor, Bitcoin will probably not go up much because people will just not risk the money they have left on Bitcoin. As for end of 2020, I think Bitcoin will be around $10,000.”
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