Bloomberg Crypto Report
The sudden slip from $10,000 to $9,500 reveals the supremacy of sellers over buyers of the world’s top digital asset. But the game is not over yet as major speculations by top analysts and institutions go in favor of Bitcoin. The latest report by Bloomberg on cryptocurrency unveils that Bitcoin will touch $20,000 and may even go higher.
According to Bloomberg’s report, the current scenario and facts reveal that Bitcoin will show a great bullish rally towards $20,000, and there are also chances that it may break all-time high value. After crossing the 2017 record, it may reach $28,000.
Reasons behind Bitcoin’s Reach to $28k
Many things help in building Bitcoin as an asset such as worldwide lockdown, rapid digitization, and cash printing in large amounts. All these factors along with institutional investors’’ interest in digital assets could accelerate it to break previous all-time high value. Per the report, Grayscale and GBTC have been consuming 25% of Bitcoin’s new market supply:
“So far this year, its increasing AUM has consumed about 25% of new Bitcoin-mined coins vs. less than 10% in 2019. Our graphic depicts the rapidly rising 30-day average of GBTC AUM near 340,000 in Bitcoin equivalents, about 2% of total supply. About two years ago, it accounted for 1%.”
On declining of premium in GBTC, Bloomberg report says:
“The steadily declining premium in GBTC despite strong inflows indicates supply being taken off the market, and maturation. On a 30- day average basis, the Trust’s 20% premium over its underlying net asset value compares with the historical mean of 39%.”
It is also mentioned in the report that Bitcoin futures also play an important role in increasing and decreasing of price value, and rising interest in futures could assist Bitcoin to gain bullish momentum.
The interesting and startling thing in the report is the prediction of price in 2020 based on the current market signals. The value can gain the figure of $28,000 in 2020:
“Last year, the high was about $14,000, which would translate into almost double in 2020 if rotating within the recent band, and mean little in the big picture.”
Tether’s Market Cap is Surging
The increase in the market cap of Tether (USDT) is another important factor that could drive the price value upward. Bloomberg said:
“Interest in digital links to the dollar represents the need to transact and store value in the world’s reserve currency without an intermediary. We can’t help but draw parallels to the adoption of paper currencies throughout history as the world today moves rapidly toward digitization.”