Bloomberg predicts that BTC will rise in 2021 and the reasons behind these two factors are related
According to Goldman Sachs analysts, due to the impact of the new crown epidemic, the global market is in a downturn, and investors’ demand for gold may rise under the uncertain economic situation. If investors’ expectations of the US recession increase, it may turn to gold. “The price of gold is expected to rebound before 2021.”
In addition, Bitcoin has the longest correlation and beta in 52 weeks relative to gold. Driven by the unprecedented loose policies of global central banks, Bitcoin will continue to rise for reasons similar to gold. (Note: Beta coefficient is a risk index, which is used to measure the price fluctuations of individual stocks or stock funds relative to the entire stock market.)
In the secondary market, since the beginning of 2020, institutional investors have purchased 53,588 BTC through Grayscale, which is equivalent to buying 1,190 BTC per day on average. “If the fund continues to buy BTC at this rate, it will have 3.4% of the global BTC supply (625,069 BTC) by January 2021, and by the next halving in 2024, it will have a share of the BTC supply. 10%.” The influx of institutional investors into the market will have a positive impact on the rise of Bitcoin prices.