First Mover: Nine Bitcoin Predictions for Final Months of 2020

Oct 1, 2020 at 13:18 UTCUpdated Oct 1, 2020 at 13:44 UTC.A lot of crypto investors like to think of bitcoin as a bet on higher inflation, or as a futuristic hedge on some imagined economic-armageddon scenario - Gold 2.0, as they say.

Lately, it's looking more like Gold 2x: As bitcoin heads into the final months of 2020, the largest cryptocurrency's 2020 investment returns are twice those of the yellow metal.

Bitcoin gained 50% in the nine months through September versus gold's 25%, during a year when a global pandemic ravaged economies and prompted central banks to print trillions of dollars.

Denis Vinokourov, Bequant: The market is testing the upper bounds of its recent range and, with the absence of fresh macro news flow that could dampen the risk on sentiment, bitcoin may just find enough momentum to break through the $11,000 price level and stay there.

The implication is that bitcoin is likely to be a powerful hedge against U.S. dollar weakness.

IntoTheBlock: There are two areas of strong resistance for bitcoin based on on-chain data.

The only thing going sideways in bitcoin is the price.

Bitcoin perpetual swaps funding rates have started turning positive.

We expect the trend of strengthening balance sheets and diversification into bitcoin to continue as the world's monetary policies shift evermore towards unbridled money printing and higher inflation.

A further round of stimulus, or a smoother than expected political transition, could pave the way for bitcoin to move higher as politicians get past electing and get back to spending.