Bloomberg claims that the first cryptocurrency will approach $ 20,000 in 2020.
“Something must go wrong so that Bitcoin does not have value.”
This is Bloomberg’s bold opening statement for the release of Bloomberg Crypto Outlook, released on Thursday, June 4th. The publication expects that the world’s first cryptocurrency will retest its record level of $ 20,000 and reach $ 28,000 this year.
Bloomberg Crypto Outlook examined a combination of factors to prove that Bitcoin will grow and maintain a current price of $ 10,000 in the short term.
The report suggests that Central Bank easing policies and the current COVID-19 pandemic are accelerating the spread of bitcoin and providing a good basis for raising prices. Based on the historical values of volatility, the publication claims that BTC is now at its lowest level.
The rise in Bitcoin prices is also due to the growing interest of institutional investors and the fact that exchanges such as the Bitcoin Investment Trust (GBTC) absorb most of the current offer and pull it out of the market. GBTC absorbed 25% of all recently mined bitcoins in 2020, compared with 10% in 2019. It should be remembered that the last halving significantly reduced current and future deliveries of the coin, which are then further reduced by the actions of GBTC.
This is not the first time Bloomberg has openly demonstrated support for the first cryptocurrency. Last year, institutional investors entering the cryptocurrency market attracted the attention of agency analysts.