As traders oversee the largest quantitative easing program ever undertaken, Bitcoin could surpass the wider market in 2020, and investors will try to keep up with the fast-paced and uncertain situation.
Bloomberg has released its forecast for cryptocurrencies, basically saying that all signs point to Bitcoin becoming part of the biggest bull run in 2020. The only question is whether it will break the all-time high of $20.
The latest report said that Bitcoin could retest record highs since 2017 and could even reach $ 28.
The report said that the coronavirus pandemic, blockages and helicopter money accelerated the development of Bitcoin as an asset, demonstrating its strength in the face of falling stocks. Also it indicates on the growing appetite from institutional investors and Grayscale Investments, or GBTC, in particular, which consumes about 25% of the new proposal:
“So far this year, its growing AUM has consumed about 25% of the new coins mined in bitcoins, compared to less than 10% in 2019. Our graph shows the fast-growing average of the 30-day average AUM for GBTC of about 340 in bitcoin equivalents, about 000% of the total supply. About two years ago, it was 2%. ”
Bloomberg believes the narrowing of GBTC / BTC is crucial:
“A steadily declining GBTC, despite a strong influx, indicates that the proposal is being withdrawn from the market and maturing is taking place. On average, over 30 days, a Trust of 20% of its net asset value is compared with a historical average of 39%. ”
Bloomberg also mentions Bitcoin futures as a possible driving force in excess of $ 10000. Bitcoin futures trading trends on CME pretty much support the price. Looking at maturities compared to the main asset flow, we see that rising futures are showing interest and a stable price premium increases volatility and associated prices.
Will Bitcoin Reach $ 28, Bloomberg Writes?
The report says that in order for Bitcoin not to increase in value, “something must go wrong.” According to his estimates, he will reach the maximum of 2017 at $ 20 and may even surpass it and reach $ 000.
Also one of the main reasons for the appreciation of Bitcoin is the rapid growth of Tether (USDT), according to the report. Last May, her market capitalization amounted to $ 4 billion. A year later, it increased to $ 10 billion. The growth in stablecoin turnover shows that people are more eager to use cryptocurrencies:
“The interest in digital links to the dollar represents the need to make and store value in the global reserve currency without intermediaries. “We cannot but draw parallels with the adoption of paper currencies throughout history, as the modern world is rapidly moving toward digitization.”
Analyst co-authors Ben Elliott said a coronavirus outbreak could also help Facebook's Libra cryptocurrency, highlighting vulnerabilities in cash-based transactions and outdated technology markets, prompting the Fed to revise digital currency production, giving Libra Facebook a new life. lenders such as Wells Fargo, Trust and US Bank are keen on technical upgrades. The Fed’s digital currency or payments application can undermine banks’s efforts.
At the time of writing, Bitcoin was up 0,30% to $ 9.