Bloomberg expects Bitcoin to grow up to $ 28,000!
Technical and fundamental factors speak in favor of the further growth of Bitcoin, and it is likely that this year it will reach a new price record exceeding $ 20,000. This is stated in the report of Mike McGlone, senior analyst at Bloomberg Intelligence commodity markets.
He calls out following factors that could become a catalyst for the growth of the first cryptocurrency: growth of bitcoin as an asset, increased volume of open positions in futures and rising interest rates by institutional investors.
Bloomberg analyst puts on the growth of gold and bitcoin.
McGlone says, for Bitcoin not to increase in price, “something should go cardinally wrong”, and he does not exclude that cryptocurrency can rise to the level of $ 28,000.
He also noted that the coronavirus pandemic and quantitative easing by central banks has reduced the cryptocurrency volatility. “The volatility of bitcoin is about two times higher than that of NASDAQ. When the cryptocurrency price and the index first crossed in 2017, this figure was seven times higher,” the analyst writes.
Speaking about the growing interest from institutional investors, he draws the attention to the fact that Grayscale Investments alone buys about 25% of the coins entering the market. In 2019, this indicator was less than 10%.
Another reason for the growth of bitcoin quotes, according to McGlone, is the rapid growth of Tether (USDT). In May last year, the stablecoin capitalization was $ 4 billion, having increased over the past year to $ 10 billion, which indicates a wider use of cryptocurrency assets.
According to McGlone, little can stop the further growth of Tether. The analyst expects stablecoin to inevitably outperform Ethereum.
At one time, Bloomberg analysts noted that the correlation between digital and physical gold has grown almost 2 times in the last 3 months.
At the same time, bitcoin reached a maximum inverse correlation with the yuan. That is, the first cryptocurrency is increasingly moving in the opposite direction to the Chinese currency.
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