Bloomberg Says Bitcoin Setting Up For 2017-Like Bull Run It has been over two years that bitcoin hit its all-time high price of about $20,000. Si
Bloomberg Says Bitcoin Setting Up For 2017-Like Bull Run
It has been over two years that bitcoin hit its all-time high price of about $20,000. Since then, the entire crypto markets have been in a brutal bear market. Bitcoin made a low of $3100 in December 2018. After managing to reach $14,000 in June, it again fell down to $3700 in March this year. However, the last one was due to the global financial crisis due to the coronavirus pandemic. But bitcoin and other cryptos might be setting up for a new bull run.
Bloomberg has some pretty strong connections with Wall Street. Its calls are usually respected in the traditional stock and bond markets. It is a new entrant in the crypto sphere. However, you might want to listen to its calls owing to the fact that it is a large entity. They released a report recently called “Bitcoin Maturation Leap”. It is an interesting read and has many insights about the future of bitcoin.
A New Bull Run
Bitcoin started 2017 at a price of $1000. By December of that year, it had topped out at $20,000. Now, it must surpass that barrier before it can make a new high. If Bloomberg is right, bitcoin will top out by the end of next year. Many experts believe that it can reach a price of over $100,000 this time around. In fact, the most optimistic targets are at around $400,000. There are many factors that will come into play during this next bull run.
For one, Bloomberg states that bitcoin has matured after the previous cycle. So, the only natural way for it to go is up. Next, the recovery in the traditional markets is acting as fuel for bitcoin. Also, in times of crisis, hard assets become greatly popular.
Assets like gold were popular in the months after the 2008 global crisis. This time around, people have a better choice in bitcoin. Not only is it more scarce, but it is also digital in nature and is easier to own and store. It will, therefore, act as a hedge asset. In recent times, the correlation in prices of bitcoin and gold has reached an all-time high. If this continues, and if history is anything to go by, the next two years are going to be golden for bitcoin. It’s narrative of digital gold will finally materialize.
One another very important factor is the reduced inflation. After the next halving, bitcoin’s inflation will be half that of the global average. It will be much more scarce than gold and have lower inflation than fiat currencies. All of these factors are quite significant on their own. Together, they may be forming a recipe of the largest bull run the world has ever seen. It might be undervalued right now based on the on-chain metrics, but it is poised to greatly surpass that.