Bitcoin will soon return to $ 20,000, a possible $ 28,000 spike

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Bloomberg expects Bitcoin (BTC) to return to a record high at the end of 2017 very soon, and could even peak at $ 28,000.

COVID-19 has helped Bitcoin

Bloomberg’s latest report points out that COVID-19 has accelerated Bitcoin’s maturation, which has proven its strength after the stock market crash. The authors of the report also identified a strong interest among institutional investors, in particular from Grayscale (GBTC) which currently absorbs 25% of the offer of new coins:

“This year, your AUM [Assets Under Management] it has continuously consumed 25% of the newly generated Bitcoins. In 2019 this figure was less than 10%.

Our chart shows that on average in the past 30 days the GBTC AUM has increased dramatically, reaching a value of 340,000 BTC: around 2% of the entire monetary supply. Two years ago the company owned 1% of the offer. “

GBTC / BTC surcharge

GBTC / BTC surcharge. Source: Bloomberg.

GBTC / BTC surcharge falling

Bloomberg also pointed out that the GBTC / BTC surcharge is decreasing, demonstrating the maturity reached by the markets:

“GBTC’s continually falling share premium, despite high flows, indicates that the offer is being removed from the markets. It is a sign of maturity. Over the past 30 days, on average GBTC has had a 20% share premium compared to BTC, in net drop compared to the historical average of 39%. “

Bitcoin and gold price on the rise

Bitcoin and gold price on the rise. Source: Bloomberg.

Bitcoin at $ 20,000, possible peak of $ 28,000

A catastrophic event should occur so that the value of Bitcoin does not increase considerably, the authors of the report point out. In their view, the cryptocurrency will reach $ 20,000 and may even reach a peak of $ 28,000:

“Last year the high was $ 14,000, which would result in an almost double price in 2020 if the cryptocurrency continues to follow the recent gang.”

Correlation between BTC and USDT

Correlation between BTC and USDT. Source: Bloomberg.

Another reason for Bitcoin’s price hike is the rapid growth achieved by Tether (USDT). In May last year, its capitalization was $ 4 billion; only a year later it reached 10 billion.

The increase in USDT in circulation indicates a greater adoption of cryptocurrencies by users:

“The interest in digital links to the dollar indicates the need to make transactions and store value, without any intermediary, in the main world value reserve.

We cannot help but draw parallels with the adoption of paper currencies throughout history, as the world moves rapidly towards digitalization. “



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https://it.cointelegraph.com/news/bloomberg-bitcoin-will-approach-record-high-of-about-20-000-this-year

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