Celsius CEO names 3 reasons why Bitcoin could reach USD 30K in 2020

Bitcoin (BTC) could be between 20,000 and 30,000 USD by the end of this year, predicted Alex Mashinsky, CEO of the major crypto-lender Celsius.

What would cause BTC to more than double its current price and possibly exceed its all-time high of $20,000 this year?

In a recent podcast with Messari CEO Ryan Selkis, Mashinsky named three elements:

 

1. The Bitcoin halving is coming

Mashinsky believes that most people underestimate the halving of the reward for mining “as a catalyst” and its impact on cryptoverse.

The big event, the fourth halving of the BTC, is expected in May, and we have already had numerous discussions about its relevance, whether the event is priced in, whether the halving pattern will repeat and when the buille might come, why this halving will happen, how it will affect Miner, and we have already seen its impact on BTC mining.

 

2. Major geopolitical events and crises in the world of traditional finance

It could cause all available assets to reach an all-time high, find the CEO and cause many people to think about possible alternatives and find BTC, which in turn would lead to an upward push in the BTC price.

Bitcoin as a store of value and Bitcoin as a safe haven are often discussed narratives, the latter having been tested and “validated” only recently, during and after the U.S. strike attack.

 

3. Adoption is critical

New people are needed in the marketplace because we all just keep trading and talking to each other, says Mashinsky. The numbers will only increase if more users come on board, combined with a halving of the offer. More users would not only be an improvement for Bitcoin, but the entire industry would see the benefits. However, getting enough people on board to reach $20,000 to $30,000 is not enough to achieve the mass rollout that is itself necessary if we want to drive the price even higher. Before a mass introduction is possible, a number of issues need to be addressed, the CEO finds, such as providing more value, less volatility and improving the transaction process. If the innovators bring solutions to these issues, the users will follow.

Another point is that companies must act in the best interests of users. “All of these 3,000 ICOs [initial coin offerings], plus the hundreds of companies funded by VCs [venture capital] that spend $16 or $17 billion – they’re all effectively toll collectors, so they’re all like a bank or a financial institution trying to take as much as possible from the people who give them assets, rather than acting in the best interest of the community,” Mashinsky said. The only way to put a billion people on the market is to work in their best interest and give them what they can’t have elsewhere.

Meanwhile, Fundstrat Global Advisors’ research chief Tom Lee, who is known for his BTC price predictions, said in a recent interview that current geopolitical events and the upcoming halving improve the use case, adding: “When Bitcoin returns to its 200-day phase, its average six-month gain is 197%.

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On the 6th February 2020, BTC was trading at around USD 9,461, up 3% in one day and 1.6% in one week. The price has increased by 174% in one year.