Bloomberg Expects Bitcoin to Double to $20,000 This Year
An analyst note published on Tuesday saying Bloomberg is expecting bitcoin to hit a record high and double to $20,000 this year.
The firm says that bitcoin is moving away from other cryptocurrencies and claims the digital currency has high favorable fundamentals and technicals.
Bloomberg has stated that the same forces making gold higher are also supporting bitcoin and that the coronavirus is making bitcoin’s maturity faster in relation to the stock market.
Bloomberg is now taking the opposing side of Goldman Sachs, mentoning on Tuesday that bitcoin could double to $20,000 this year.
Just last week, Goldman published a list of five reasons investors should avoid bitcoin.
Bloomberg reaffirmed bitcoin by stating “something needs to go really wrong for bitcoin to not appreciate,”
The company stated that history indicates that bitcoin will most likely return to $20,000 in 2020, showing twice what it’s current levels are.
Bloomberg added “Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend,”
The research note mentioned that Bitcoin is maturing very quickly, being accepted by digital currencies, ability to trade bitcoin futures, and the decline of it’s volatility, makes it likely that it will keep its tilted toward price appreciation.
In addition, Bloomberg stated it expected bitcoin to appreciate if the stock market drops.
Bitcoin has technically solidified a $8,000 level as support and may move even higher if it decisively breaks over the $10,000 level. Technical analyst Katie Stockton had made comments recently in regards to that.
Bloomberg also mentioned that it believes bitcoin is gaining from the coronavirus pandemic, for many reasons.
Bloomberg said, to begin with, past declines in equity markets due to the virus didn’t cross into bitcoin, even a brief dip in the cryptocurrency was “promptly rejected,”
In addition, the virus is making the shift from paper currency toward digital currency much faster.
Lastly, Bloomberg said that new policies of quantitative-easing coming from central banks around the world are “helping independent stores-of-value such as gold and bitcoin,”
However Bloomberg does not view other cryptocurrencies the same way he views bitcoin.
Bloomberg states “We see little upside in the ETH price absent a rising tide from bitcoin,” saying that bitcoin “is breaking away from the pack in terms of adoption and is supported by almost-ideal macroeconomic conditions for stores-of-value amid quantitative easing.”
Bloomberg has joined other influential investors, holding bitcoin in high regard. This includes the hedge-fund manager Paul Tudor Jones and the billionaire investor Chamath Palihapitiya.
On Wednesday, Bitcoin traded up 1%, to $9,762.
Bitcoin is on the rise, astonishing Bloomberg who is now strongly backing the cryptocurrency.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated Bitcoin Merchant Account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.