Bloomberg published a new report entitled “Bloomberg Crypto Outlook”: Bitcoin Trend, Adding Zeros, which describes a possible long term priceof Bitcoin. Analysts admit they don’t know what catalyst could trigger the upward race to new highs, but demand vs. supply “remains positive because of the price.
“If cryptography matures to reflect its past gains, spending roughly twice as much time adding zero to $1,000 could bring the price up to $100,000 by 2025,” the report said.
Bloomberg experts also say that the long term price of Bitcoin, like gold; is in transition to take advantage of increasing volatility in the stock markets. The analyst’s graph shows the highest 12-month correlation between Bitcoin and gold in the database since 2010.
Stable currencies are gaining ground
The 12-month cryptographic movement against the S&P 500 is high, but higher according to analysts. In addition, Bloomberg predicts that Tether’s market capitalization will surpass Ethereum next year.
Analysts believe that the rampant adoption of stable currencies “is likely a precursor to the central bank’s digital currencies and promises a longer life than the speculative excesses of alternative currencies.
In June, Bloomberg intelligence analyst Mike McGlone said the long term price of Bitcoin largest crypto by market capitalization could rise to $20,000 by the end of 2020. McGlone said the reason the higher cryptography could be exceeding the December 2017 peak are technical and fundamental factors that are “increasingly cheap” for BTC.
These factors include the maturity of Bitcoin versus other investment options, increased open interest in futures, and increased interest from institutional investors.
On the other hand, for this 2020, analyzing the monthly yields during the last halving period from 2016 to 2020; PlanB highlighted the “very asymmetric” nature of Bitcoin’s price performance.
As such, for BTC/USD to leave its current stagnant levels at around USD 9,000 and reach USD 12,000, all it takes is a “typical” month of solid 30% earnings.
27 November, 2020