2020-10-6 15:34 |
Bitcoin has a history of adding zeroes. At the end of 2017, bitcoin achieved $10,000 for the first time, which was less than a year after BTC hit $1,000 for the first time in January 2017. Before that, in 2011, BTC was around $10 in 2011 and then $100 in the second half of 2013
In the next five years, it is expected to hit another milestone by adding yet another zero to it, taking it to six figures, as per Bloomberg’s latest crypto outlook report.
“Considering normal maturation, about double the time frame from $1,000 to $10,000 would come in around 2025, for Bitcoin to potentially add another zero,” reads the analysis from Bloomberg Intelligence analyst Mike McGlone.
While the price is expected to keep hitting new highs, the 260-day annual volatility is heading downwards and expects to breach the previous low of 37% from 2016 as the digital asset matures.
Source: BloombergWith a market cap of $200 billion at the current price, the Bitcoin market is too small to be part of large institutions, including central banks, unlike gold, whose 20% of annual supply was absorbed by them in 2019.
But gold has a market cap of $9 trillion, and “if the market cap of Bitcoin increases, it becomes increasingly like a digital version of gold,” says the analyst.
For now, according to him, Bitcoin’s leading demand indicators point to revisiting the 2019 high of $14,000 “potentially this year.” With Q4 the most bullish quarter for the digital asset, it is a real possibility.
With Bitcoin the most correlated to the precious metal since 2010, on a 52-week basis, it is becoming more like gold as such “in transition to being a beneficiary of increasing stock market volatility.”
While the crypto asset’s 12-month correlation to the S&P 500 is also elevated, it has been higher. In 2020, the equity market hit new highs and recorded a total return of about 5% in 2020 compared to Bitcoin’s almost 50%, a disparity McGlone expects to widen. The report reads,
“An underperforming stock market may initially pressure Bitcoin, but encourages more quantitative easing and rising debt-to-GDP levels, which are strong tailwinds for gold and Bitcoin.”
Bitcoin’s limited supply, and the unparalleled macroeconomic backdrop of rapidly increasing fiscal and monetary stimulus, and fundamentals like the hash rate and active addresses keep on increasing are answers to why bitcoin should keep appreciating.
According to the report, even the Bitcoin ETF is a matter of time that will allow “easier access by money managers as gold ETFs did in 2004.”
“The way we see it, something significant needs to go wrong to reverse Bitcoin adoption and price appreciation,” wrote McGlone.
Bitcoin (BTC) Live Price 1 BTC/USD =10,727.3400 change ~ -0.01Coin Market Cap
198.56 Billion24 Hour Volume
67.81 Billion24 Hour Change
-0.01 var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD");The post Bitcoin On Track to Hit 0,000 in Next Five Years: Bloomberg Report first appeared on BitcoinExchangeGuide.
Similar to Notcoin - TapSwap on Solana Airdrops In 2024
Bitcoin (BTC) на Currencies.ru
|
