Bitcoin price rose by about 31% in January 2020 setting a positive precedent for the year in which a potential bull run has been predicted. The digital currency was trading at around $7,200 at the beginning of the month rising sharply to about $9,500 on the final day of January 2020.
The high price gains saw a reversal of fortunes for a month that has been historically difficult for Bitcoin. For the past 7 years, the digital currency has endured tough beginnings to the year failing to record positive gains in January in that period. The troubles peaked in January 2015 when Bitcoin lost about 38% of its value in that first month.
This Bitcoin January price rally was last witnessed in 2013 with the currency rising by about 55% in that month alone. Apparently, 2013 was Bitcoin’s best year and if history repeats itself then we are in for a similar rally that could see Bitcoin reach new All Time High (ATH).
Analysts believe that patterns for Bitcoin prices are emerging suggesting that the monthly performance could be replicated over greater spells of the year with further surges down in line. Moreover, with halving expected in under 100 days the price rise could be sustained over time resulting in a prolonged bull run.
January 2020 was full of global incidents that have been cited as the precursors for the price rise. For instance, Bitcoin sharp ascent begun on 3rd January following a USA sanctioned drone strike on Qasem Soleimani, an Iranian Revolutionary Guard’s top commander. The event sparked a wave of uncertainty resulting in increased demand for Bitcoin in the face of potential war between the nations.
The month also saw a continuation of political strife in other regions such as Hong Kong and South America. This has led people in these regions to consider Bitcoin as a means for bypassing sanctions and financial surveillance.
The Chinese New Year and outbreak of the coronavirus added to the fear, uncertainty, and doubt which unfortunately fuels the crypto markets. Bitcoin traded sideways a lot during this duration but continued its spirited run after the Chinese New Year and increased clarity about the extent of the coronavirus.
Other global events such as no-frills Brexit have affected the markets by raising the levels of uncertainty prompting people to stock up on Bitcoin. The markets have also responded with increased demands in anticipation of the forthcoming halving touted as a potential price catalyst.
Whichever way Bitcoin’s price goes in the remaining 11 months is anyone’s guess. But for now one thing remain clear; Bitcoin has had a very good beginning to a year in a very long time. This is a win the whole community will take for now and hope that it maintains the positive run for a very long time. It is the least they deserve especially given the prolonged bear run they have endured.
Image courtesy of Pixabay
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