Will Bitcoin Cross $20,000?
Bitcoin at $ 20,000: Bloomberg predicts the rapid growth of the coin
Bitcoin may hit $ 20,000 by the end of the year
The graphs show that the BTC is behaving exactly as in 2016
Stablecoin May Become New Reserve Currency
An analysis of the historical behavior of bitcoin promises an early bullish growth, and the coin itself may rise to $ 20,000 by the end of the year. This forecast was published by Bloomberg in its report on the development of the cryptocurrency market..
History repeats itself: Bitcoin will take off
According to the data presented in the report, today bitcoin behaves the same as in 2016 after the second halving. Researchers Compare Cryptocurrency Dynamics Since 2014.
For example, six years ago, military-technical cooperation fell by almost 60%, but by 2016 it reached the growth rates of 2013. After a huge failure in 2016, the BTC is making a leap and in 2017 it reaches a record $ 20,000 apiece. Confirmation is the graph of price dynamics for the main cryptocurrency, which leads Bloomberg.
Researchers suggest that Bitcoin is now moving along a mirror line, which will allow it to consolidate at $ 20,000 by the end of the year.
In addition, Bloomberg believes that Bitcoin and gold will become the leading assets of 2020 and receive a new portion of “fuel” from investors for rapid growth. The report says that prior to the March crisis, gold hit $ 1,700 and bitcoin surpassed the $ 9,000 mark. While the COVID-19 crisis disrupted the stock market and the NASDAQ and S&P 500 collapsed, the cryptocurrency was able to hold out the longest, and also recover its value faster than all other assets.
The researchers also concluded that bitcoin is becoming a more sustainable asset than raw materials. The report provides a comparative analysis of the behavior of oil and bitcoin prices. Already in April, bitcoin won back more than 30% of the value, while oil fell to minus marks.
This allowed investors to strengthen their faith in cryptocurrencies as a defensive asset..
According to Bloomberg analysts, Bitcoin futures, which are now actively traded on the Chicago Mercantile Exchange (CME), also work to support the price of the cryptocurrency. Open interest in bitcoin futures contracts increased especially when the coin broke the $ 10,000 milestone.
Experts believe that this factor will become one of the decisive factors in the growth of military-technical cooperation prices. Today, more and more institutional investors are willing to invest in cryptocurrency derivatives trading.
What will happen to stablecoins
The coronavirus epidemic has played into the hands of stablecoins. When the world began to massively abandon paper money in favor of digital, stablecoins were more in demand than ever. The community’s interest in this cryptocurrency will push its price up, analysts at Bloomberg are sure. Stablecoins have already received the status of “reserve currency without intermediaries”, and Tether will play a key role in the stablecoin market.
In addition, the researchers are confident that the COVID-19 epidemic will spur the governments of countries to work faster towards launching digital money, and will also give an impetus to the launch and rapid popularization of the Libra stablecoin.In June 2019, Facebook announced preparations for the release of the digital currency Libra. The social networking project immediately attracted attention … More.
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