Skip to main content

Bitcoin will double to $20,000 this year unless something goes 'really wrong,' Bloomberg says

A man walks past an electric board showing exchange rates of various cryptocurrencies including Bitcoin (top L) at a cryptocurrencies exchange in Seoul, South Korea December 13, 2017.  REUTERS/Kim Hong-Ji

Reuters

  • Bloomberg expects bitcoin to revisit its record high reached in 2017 and double to $20,000 this year, according to an analyst note published Tuesday.
  • The firm sees bitcoin breaking away from other cryptocurrencies, and says the digital currency has increasingly favorable fundamentals and technicals. 
  • Bloomberg says the same forces pushing gold higher also support bitcoin, and that the coronavirus is accelerating bitcoin's maturity relative to the stock market.

Bloomberg is taking the opposite side of Goldman Sachs, saying in a note published on Tuesday that bitcoin can double to $20,000 this year.

Last week, Goldman listed five reasons why bitcoin should be avoided by investors.

The most popular cryptocurrency has so many favorable fundamental and technical factors that "something needs to go really wrong for bitcoin to not appreciate," Bloomberg said.

The company said history indicates bitcoin should return to $20,000 in 2020, representing roughly a double from current levels.

"Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016's trend," according to Bloomberg.

The maturation of bitcoin, fueled by the growing acceptance of digital currencies, the ability to trade bitcoin futures, and a steady decline in volatility, should keep it tilted toward price appreciation, the research note said.

Additionally, Bloomberg expects bitcoin to appreciate if the stock market rolls over.

Technically, bitcoin has solidified the $8,000 level as support, and could move higher if it decisively breaks above the $10,000 level, which echoes recent comments from technical analyst Katie Stockton.

Bloomberg said it thinks that bitcoin is benefiting from the coronavirus pandemic, for several reasons.

First, historic declines in equity markets because of the virus didn't spill over to bitcoin, as a brief dip in the cryptocurrency was "promptly rejected," Bloomberg said.

Second, the virus is accelerating the shift away from paper currency toward digital.

And third, new quantitative easing policies from central banks around the globe are "helping independent stores of value such as gold and bitcoin," according to Bloomberg.

But Bloomberg's bullish view on bitcoin doesn't translate to other cryptocurrencies like ethereum.

"We see little upside in ethereum price absent a rising tide from bitcoin. 

[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 said.

Bloomberg now joins other influential investors in being bullish on bitcoin, including hedge fund manager Paul Tudor Jones and billionaire investor Chamath Palihapitiya.

Bitcoin traded up 1% to $9,762 on Wednesday.

Source : markets.businessinsider.com

Comments

Contact us

Name

Email *

Message *

Popular posts from this blog

Cryptocurrencies Adding to the Safety and Security in the UK Gambling Industry

These are exciting times for the UK gambling industry. The impact of internet technology is now being felt with online gambling now controlling the industry.  The adoption of cutting-edge technology is reasonable for the boom in the industry. From live casinos, mobile apps to artificial intelligence, incredible trends continue shaping the gambling industry. However, it is the rise of cryptocurrency casinos that seeks to redefine UK gambling.  Many operators now include crypto coins such as bitcoin, Ethereum and Litecoin as part of their banking methods. Others offer exclusive bitcoin payments and promotions based on digital tokens. This revolutionary trend has a huge impact due to enhanced safety and security on these platforms. Players looking for peace of mind when playing online now opt to use cryptocurrencies. This post looks at how cryptos guarantee the safety and security of players at online casinos. How Cryptocurrency Gambling Works There’s a lot of talk about cryptocurrency,

Will Solana (SOL) Be the Shining Star of the Bull Market?

About 250,000 to 700,000 SOL have been sold daily by FTX for the last three weeks. SOL’s price jumped above $60, as GSOL’s premium also increased. While the price may retrace, it may not take long before SOL hits $70. Despite being a notable casualty of the FTX contagion in 2022, Solana (SOL) has defied all odds in 2023, as the price continues to outshine its peers. In the last 30 days, the value of SOL has increased by 180%, rising as high as $62 on November 11. However, the rising price of SOL is not the only interesting thing the token has shown by the token. For a token that was once described as dead, it has shown tremendous strength. Coin Edition came to this conclusion because of a post by trader Bluntz Capital. The Big Players Are Here According to Bluntz, FTX, after getting the go-ahead to liquidate its assets, has been selling around 250,000 to 700,000 daily for the last three weeks. Regardless of the sales, SOL has failed to nosedive. Rather, the price has chosen the upside

Terra Classic Community Passes Major Constructive Proposal, LUNC And USTC To $1?

  The Terra Luna Classic community has passed another key proposal as they prepare for a revival of Terra Luna Classic (LUNC) and repeg USTC stablecoin to $1.  The proposal aimed at having a guideline for a pay-per-job approach on the Terra Classic chain as core developer L1TF goes into maintenance mode for Q4. Meanwhile, the community is also collaborating on other fronts to keep LUNC and USTC above key support levels as traders started booking profits amid the latest pullback in the crypto market. Terra Luna Classic Passes Pay Per Job Proposal Proposal 11889 “Pay-per-job and governance-ruled Job List” has passed successfully. The proposal deemed the monthly model of roadmap and payment planning as suboptimal and plans to switch to a pay-per-job model. The proposal has received 91.99% “Yes” votes, with others mostly voting “Abstain”. The community believes it will optimize compensation structure, provide flexibility and transparency, boost community engagement, and risk mitigation. A