- Bitcoin price takes further hits but USD 8,000 is not out of reach just yet
- BitPay’s Sonny Singh believes Bitcoin will be USD 20,000 this year, but reasons will not be known
- KPMG sees blockchain and IoT involved in climate change management this year
Bitcoin price took a tumble today, going down as low as USD 7,650 (CoinDesk) before clambering back upwards now where trading seems to settle just above USD 7,900 with USD 8,000 back in its sights.
Momentum does seem to have been lost for the short term, as the pullback intensified earlier, but we will need to examine how American traders react on Friday to determine if the weekend will bring further losses or if the bulls will return, as they did last weekend.
Analysts will point out that after removing itself from the hourly chart’s ascending trendline, the bullish higher lows pattern witnessed every since 1 January has been broken today. Others will point to relative strength index (RSI) numbers falling below 50, typifying short term bearish conditions.
Bulls may not have to wait too long to see Bitcoin reach its all-time high near USD 20,000, if BitPay’s chief commercial officer is to be believed. According to Sonny Singh in his Bloomberg article, something unforeseen is bound to tip Bitcoin over the edge of a rally, clearing the way for USD 20,000 some time this year.
Singh uses a pattern of past historical trends to base his prediction, pointing to the sovereign debt crisis in Greece as a precursor to Bitcoin’s boom, while last year’s sudden Facebook announcement of a new digital asset sent waves of reactions throughout the world that moved markets fiercely.
In fact, he points to the tensions in geopolitics as another recent evidence, with the US and Iran’s actions directly influencing Bitcoin’s 20% rise, and subsequent pullback when tensions lowered. Singh says the cumulative effect of all these events was that Bitcoin enjoyed small numbers of new investors:
“I don’t think people actually went and sold their GD stock and all that and bought Bitcoin, but I see what happens is just a little bit of people start buying Bitcoin and that, with technical trading, really bumps it up and makes it go a lot higher a lot faster.”
Singh will be confident of his call this year, as last year, he came very close to a 2019 high. His forecast for 2019 saw a range of USD 15,000 to USD 20,000, and it wasn’t really that far off, with a 2019 high of USD 13,800.
All-time high or not, blockchain’s future will be bright, of that there is little doubt. And KPMG’s US blockchain lead Arun Ghosh has the numbers to back that prediction up.
According to Ghosh, blockchain, together with IoT will even be used to manage climate change this year. Ther way Iot enables data collection and exchange, he believes that:
“The convergence of these technologies is enabling organizations to accelerate environmental governance, with blockchain’s chain of custody being deployed as a central component to driving sustainability.”
One of the so-called Big Four accounting firms KPMG is already operating in 154 countries. Ghosh says that their wide network noticed that emerging economies like in India, Ukraine and China, have all begun to focus on mechanisms that automate air quality, and are now seeking answers as to what air quality standards should look like in the future.
Not keen to reveal more details to these purported discussions, one can only triangulate data that already exists, such as that from Grand View Research, Inc., which estimated the value of the global air quality market to be at USD 6.5 billion by 2025.
How much of that will blockchain and IoT capture? It may rely on how securely blockchain can help store IoT data and protect it from manipulation. Ghosh explained:
“There is a lot of momentum around accounting standards of carbon monoxide that requires trusted data coming from IoT enabled devices. We are hearing more conversations around data and carbon offset programs and how we can merge these programs into developing better accounting standards through blockchain and IoT devices.”
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