Bloomberg has released a bullish report on bitcoin which predicts that the digital asset could be headed for a threshold of $100,000.
The report, titled “Bitcoin Making Gold Redundant?” provides a view that the cryptocurrency is transitioning from a speculative risk asset to a global digital store-of-value.”
Bitcoin has enjoyed an impressive bullish cycle buoyed by institutional capital as well as declining supply.
The report acknowledged that the digital asset will likely continue on its upward trend due to demand outweighing the supply. The “increasingly favorable macroeconomic environment” will help to maintain bitcoin’s upward trajectory.
Big names from Wall Street and other industries have invested in bitcoin, with Tesla, the largest automaker by market cap, allocating $1.5 billion to investing in BTC.
The investments by major companies have propelled bitcoin into the mainstream. Big banks such as JPMorgan and Goldman Sachs are warming up to bitcoin, a clear signal that it is no longer just a speculative asset playing second fiddle to traditional assets.
Per the report, a price of $100K per bitcoin looks likely.
“$100,000 may be bitcoin’s next threshold.”
With bitcoin’s market cap surpassing $1 trillion and the prices hitting new all-time highs above $50K, the crypto community is now focused on reaching $100K per BTC. And there are even memes for it.
Enthusiasts have included laser eyes on their public images as they “focus” on the $100K price target.
As bitcoin’s price soars, a number of investors are favoring the digital asset over gold, which is traditionally a safe haven asset.
Bitcoin and gold
Crypto advocates have touted bitcoin as digital gold and a safe-haven asset. JPMorgan claimed last December that gold will suffer because of bitcoin.
The report noted that there is an increase in portfolios that are replacing gold with bitcoin.
“Bitcoin replacing gold is happening,” the report said.
“In 2020, the benchmark crypto gained legitimacy with declining volatility vs. the opposite in most assets. In 2021, we see little to stop the process of old-guard gold allocators simply focusing on prudent diversification.”
Crypto hodlers reluctant to sell
Long-time crypto hodlers are not willing to sell, as they believe that bitcoin is poised to fetch a higher price.
This reluctance to sell diminishes the supply and “could keep the price bias tilted toward more appreciation if history is a guide.”