Crypto exchange founder, Ballet crypto wallet company CEO and founder, and member of the Bitcoin foundation’s board of directors, Bobby Lee, sees soaring prices in Bitcoin’s (BTC) future, partially associated with its upcoming halving.
"The fact that this is the first block halving after Bitcoin became a mainstream investment option for many people further increases Bitcoin's potential upward price movement compared with 2016," Lee said in a quote to Cointelegraph regarding the effect of the 2020 halving compared to previous years.
"The past few weeks show that we will see a significant price jump ahead of the third block halving as mainstream investors turn to bitcoin as a safe haven asset whose supply is decreasing,” Lee added.
Lee said he expects Bitcoin to hit $10,000 by its block reward halving in May in a statement provided to Cointelegraph. The CEO also forecast a $25,000 price tag for BTC by December 2020.
The halving means less inflation
With Bitcoin’s halving approximately one month away, much of the crypto space expects higher prices, in line with previous halving outcomes.
Lee referenced previous halvings that were accompanied by upward price action, noting:
“When new supply is cut in half and demand stays the same or increases, a price increase is a certainty. An increase of 25% to 50% by the third halving in May is a very modest expectation.”
Global conditions might propel Bitcoin’s price
The world currently fights the coronavirus and a struggling economy, which also factors into Bitcoin’s price. “I expect a huge surge in demand for cryptocurrency over the next few weeks as Bitcoin’s inflation slows down with the block halving while governments continue to inflate currencies to mitigate the economic impact of the global pandemic,” Lee posited, adding:
“As a greater amount of fiat money chases a limited amount of goods and services, a significant increase in inflation is inevitable, which will cause prudent investors to turn to Bitcoin as a safe haven to preserve their purchasing power.”
The asset’s halving, matched with current worldwide conditions, could see crypto’s pioneer asset blow past its all-time high, according to Lee. “I am convinced bitcoin will exceed its $20,000 peak from late 2017 to reach a new all-time high of $25,000 by the end of 2020.”
Ballet, Lee’s wallet outfit, will conduct several promotions in light of the halving and future BTC prices.
Contrary to the hype around the halving, however, only two data points are available for price comparison. Several experts also hold different price expectations for this halving.
UPDATE April 8, 16:27 UTC: This article has been updated with information Cointelegraph received from Bobby Lee after initial publication.