Bloomberg Intelligence had a recent report on Bitcoin where they projected Bitcoin could rise to $100,000 in the next 5 years. That’s right, $100,000. This was not a ‘crypto nut’ website but a very serious financial publication making a case for significantly higher Bitcoin prices. The Bloomberg intelligence piece had a number of key points. Here are a few key ones:

  • There is limited Bitcoin supply on very favourable macroeconomic environment (low rates, QE etc).

  • The lowest volatility ever vs the Nasdaq 100 index indicates that Bitcoin is ripe to rise from the one-to-one price to index ratio entrenched for three years. The chart below shows the ratio of Bitcoin’s 260 day volatility to that of the Nasdaq reaching a new low. Bitcoin’s price first matched the Nasdaq index value in 2017 at about $6,200. It revised the level in March and has nearly doubled since then with volatility declining for Bitcoin vs it rising for the stock market. Risk is improving for Bitcoin.

BTCUSD

  • Bitcoin supply is limited and declining on an annual percentage. The market cap is $190 billion, so too small for large investors. However, if that cap increases then it can become more like a ‘digital gold’, Gold capitalisation is around $9 trillion.

  • As stocks underperform that encourages even more QE and rising debt to GDP ratios. These are tailwinds for gold and bitcoin (via a weaker USD).

  • The rapid rise in the market capitulation of stable crypto coins indicates that central bank digital currencies are just a matter of time. In this ‘digital currency’ market who is the kingpin? Bitcoin. The digital version of gold.

  • There are favourable trends in decentralised finance (DeFi) and exchanges (DEXs).

  • About 90% of the 21 million Bitcoins that will ever be mined have been.

  • Bitcoin is correlating more closely with gold. On a 52 week basis, Bitcoin is the most correlated to the metal in the Bloomberg Intelligence’s database since 2010. When futures were launched in 2017 the Bitcoin to gold relationship was closer to zero vs about 0.44 now.

  • Bitcoin looks to be the leader in a paradigm shift towards digital money and stores of value. It may fail, but the Intelligence piece sees this as unlikely as On-Chain indicators show a solidifying foundation. Read here to understand On-Chain metrics. The Bitcoin has rate continued to increase and has reached new highs.

Looking at the technicals there are a few key points ahead. Check out this break of the daily trend line highlighted last week. The break of the monthly trend line would be a great sign for Bitcoin bulls and necessary for any hopes of Bitcoin reaching $100,000.

Fxoriginal

 

Learn more about HYCM

High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA braces for a test of $2 amid a potential bull pennant

Cardano (ADA/USD) is extending its recovery this Sunday after a sharp sell-off witnessed a day before. ADA/USD charts a bull pennant on the 12H chart.  A test of the $2 mark appears inevitable if the bullish pattern is confirmed. RSI has regained upside momentum, well above 50.00.

More Cardano News

XLM Price risks further falls towards $0.53 amid double top reversal

XLM/USD is falling for the third straight day on Sunday. $0.53 support appears at risk after the double top reversal on the 1D chart. RSI points south towards the midline as the XLM price eases from record highs.

More Stellar News

SafeMoon price has additional room to rise after the four-day blistering rally

After a crash witnessed towards the end of last month, SAFEMOON buyers have returned in the first week of May, showcasing a stellar performance. SAFEMOON price looks to the moon after a series of encouraging tweets. 

More SafeMoon News

Ethereum Classic Price Analysis: ETC bides time before the next upswing kicks in

ETC price is stuck in a tight range between two key Fibo levels on the 12H chart. Overbought conditions warrant caution but the coin defends key support so far. Ethereum classic awaits fresh impetus for the next direction.

More Ethereum Classic News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP