Bitcoin set a new all-time high above $61,000, but most analysts believe it could go higher before the end of the year. Bloomberg’s latest report shows that the media outlet is bullish on Bitcoin and sees it rising to the $400,000 mark this year.
Bloomberg delivers bullish outlook on Bitcoin
The leading cryptocurrency has caught the attention of the mainstream financial sector this year. It broke the previous all-time high last year and went on to set a new one above $61,000 earlier this year.
Financial media outlet Bloomberg published a cryptocurrency outlook report earlier today. According to the report, Bloomberg expects Bitcoin’s price to go higher this year. Bloomberg stated that the technical outlook for Bitcoin in 2021 remains strongly upward if past patterns repeat. Common companions for strong annual rallies in the first-born crypto — low volatility and halvings — are aligned favorably, the report added.
Bloomberg wrote, “Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since the 2011 high. In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month’s average price, Bitcoin increased a little over 50x to the peak in 2017.”
The report pointed out that there is a strong demand for Bitcoin at the moment, and it is indicated by the high number of bitcoins leaving crypto exchanges. The amount of bitcoins on crypto exchanges is down from 2020, indicating that most people are storing their BTCs on wallets and intend to hold them for the long term.
Bitcoin is rapidly replacing Gold
JPMorgan has previously mentioned that Bitcoin’s growth is coming at the expense of Gold. Bloomberg takes the same position and believes Bitcoin is fast replacing Gold. Bloomberg stated that “most indicators show a shifting global tide that favors the nascent digital currency as a reserve asset.”
The media outlet believes that Bitcoin (regarded as the digital Gold) is fast replacing the precious asset as a store of value. “Gold will always have a place in jewelry and coin collections, but most indicators point to an accelerating pace of Bitcoin replacing the metal as a store of value in investor portfolios. Bitcoin’s fundamental and technical underpinnings are improving while Gold’s deteriorate,” Bloomberg added.