- The Bloomberg Crypto Outlook opens with the strong statement, ” Something has to really go wrong for Bitcoin to not increase in price.”
- 25% of all recently mined Bitcoins, in 2020, absorbed by GBTC. The predecessor rate was 19% in 2019.
- The publication suggests that the pandemic situation urged the world to prioritize digital over the physical currency. This is because of it being contactless.
The Bloomberg Outlook weighed in factors and stated that Bitcoin will be able to hold the ongoing support at $10,000 in the short term. It says that the current situation shows signs of Bitcoin going on a full bull run in 2020 and contemplated to break the all-time high of $20,000. The report points out how the Covid-19 situation has begun to spur the maturity of Bitcoin as an asset. The Central Bank has also helped the process. easing Bloomberg suggested that the March 2020 crash set up a good base for higher prices.
Bitcoin Price from $20k to $28K?
The 2020 Edition Bloomberg Galaxy Crypto Index (BGCI) reveals it anticipated that Bitcoin (BTC) may go as high as $28,000. Bitcoin supposed to retest the 2017 high record. The report opens with the strong statement, ” Something has to really go wrong for Bitcoin to increase in price”
Bitcoin’s value appreciation is due to the absorption of current supply and scrapping it from the market by On-exchanges like Grayscale Bitcoin Trust (GBTC). 25% of all recently mined Bitcoins absorbed by GBTC. The predecessor rate was 19% in 2019. The current Bitcoin mining reward has reduced due to the 3rd Bitcoin Halving from 12.5 to 6.25 BTC.
The constant increase in the number of active addresses (wallet holders) indicates price appreciation. The past also suggests that price recovery followed when this metric breaches the previous 30 days high. This earlier happened in 2019.
Covid-19 Situation Favouring BTC
The publication suggests that the pandemic situation urged the world to prioritize cryptocurrency over the physical currency. This is due to its being contactless. Since no one can just digitalize any legal tender, the most common cryptocurrency, BTC preferred.
Gold has been the top broad commodity for over 40 years now. It is ever-extending its peak that could be a strong companion in Bitcoin’s upward hike. Bloomberg mentioned gold topping “Carter-Era high” vs. commodities.