Until a few months ago, most of Wall Street had a very negative image in regard to Bitcoin mostly viewing it as one of the biggest scams of our time. Of course, most of Wall Street is composed of the average Joe who has to conform to the norm or else risk losing their job.
That all changed when two reputable financial wave-makers: Renaissance Technologies and Tudor Investments dipped their toes into Bitcoin. Legendary trader Paul Tudor Jones has stated he believes Bitcoin may be the best performing asset during the great monetary inflation. All of sudden, all analysts want to jump on board the Bitcoin train and embrace its existence.
Bloomberg Analyst Predictions
A Bloomberg analyst, Mike McGlone, has released a prediction about Bitcoin essentially stating that the crypto-asset is likely going to $20,000 by the end of 2020. The analysis states specific points to support the bullish bias with arguments of the sort that the supply drop (halving) is pointing to similar reaction to 2016, Bitcoin ‘should’ breach the $10,000 mark and that Bitcoin has shown maturity as its volatility against crude oil has reached very low levels.
Bitcoin’s Value Proposition
The reality is Bitcoin has the best monetary environment to thrive and prove its value proposition. However, that was true months ago as soon as the pandemic hit the markets and years ago when it was clear the FED would once again step in with QE when a crash/retracement/pullback imminently comes around the corner. Bitcoin’s value proposition isn’t new, signs were clear that it was acting as a geopolitical safe haven and a hedge against inflation.
The issue with Wall Street is a lack of self-reliance and courage from individuals in the business. This sudden surge of bullishness from the “old guys” seems like a need for acceptance and acknowledgment by the wave-makers.