On April 6, Bloomberg released the April edition of its monthly Cryptocurrency Outlook, which outlines the bullish narrative surrounding Bitcoin and the emerging industries around it. The report is particularly promising, especially because it comes from well-known traditional companies in the financial and media industries. Here are some highlights:
“Bitcoin satisfies the demand for digital reserve assets in the low-yield world”
“In our opinion, the adoption of Bitcoin has entered a unique state of humanity, which supports the rise of cryptocurrency. Fund managers who are unwilling to cross Rubicon and allocate at least a small portion of funds may be at risk. Because Bitcoin is just doing more, pushing prices up in the context of unprecedentedly low interest rates and rising stocks.”;
In the past year, record low yields in the global economic environment have played an important role in the adoption of Bitcoin, and more and more investors have begun to take notice. Bloomberg also highlighted the dichotomy between Bitcoin’s recent performance and gold’s performance.
“The indicator points to an increase in the bitcoin/gold ratio”
“In addition to the nascent Bitcoin with sufficient maturity potential, the cryptocurrency also has obvious advantages, which will further reduce its volatility relative to gold-the supply of Bitcoin is fixed. Mainstream adoption and higher prices are Increase the depth, thereby suppressing volatility and risk measures.”
The report repeatedly emphasized the superior characteristics of Bitcoin and its suitability as a currency asset in the digital economy compared with digital currencies. Although the prospect of gold is not detrimental to the metal itself, data and price trends have prompted Bloomberg to conclude that Bitcoin is replacing its currency predecessor as the preferred non-sovereign reserve asset in investor portfolios.
“The process of using Bitcoin instead of guarding gold is much more sudden than it happened suddenly”
“The motto that money flows to the most useful place describes the solid foundation we believe the price of Bitcoin has. Gold is not necessarily bearish. Gold has returned to the support level below $1,700 per ounce, but most indicators show that global trends are taking place. Change, which is conducive to emerging digital currencies as reserve assets.”
“Digital and Analog: The Advantages of Bitcoin”
“The relationship between Bitcoin and gold is similar to 2016, when the peak of metal touched just under $1,400 per ounce, while cryptocurrency hit the peak of 2017. The main difference this time is that the value of Bitcoin continues Rise, speculation has also declined, while the adoption rate has increased. In terms of market value, it is the world’s largest automaker (Tesla) announced that it will diversify part of its equity wealth into cryptocurrencies, allowing Bitcoin to exceed 40,000 The resistance of the dollar.”
The report also emphasizes on-chain analysis, which shows that despite the bullish price trend, the supply of bitcoin on exchanges continues to decrease, which is the opposite of the trend observed in the 2017 bull market cycle.
“Bitcoin holders have few signs of seeking to sell”
“The market is about the relationship between buyers and sellers. If the number of cryptocurrencies that can be traded at any time becomes a guide, the risk of Bitcoin tends to appreciate further. Our graph depicts that the percentage of Bitcoin held by exchanges is much lower than in 2020 The peak value of, which marks the extreme selling. The pattern in this data set from Coinmetrics shows that when the number of cryptocurrencies held by the exchange exceeds the previous high, the bitcoin price will gain a higher risk of the seller dominating the buyer. This is what happened around the high prices in 2017.”
Another noteworthy highlight of the report is Bloomberg’s expectations for Bitcoin, which believes that Bitcoin will be similar to mining subsidies in 2013 and 2017, halving the bull market cycle, and pointed out that the asset’s price is $400,000. Over the years, logarithmic, seemingly programmatic Bitcoin price action has made investors salivate in the current non-profit economic environment.
“Bitcoin rhymes in 2013, ’17 peaks reached approximately $400,000”
“If the past pattern repeats itself, then Bitcoin’s technological outlook in 2021 will continue to rise strongly. The common companions of strong annual gatherings in first-born cryptocurrencies-low volatility and halving-are in a good position. Bitcoin is depicted in a similar way to the gains of approximately 55 times in 2013 and approximately 15 times in 2017. To reach extreme prices similar to those in 2021, based on the return of highs since 2011, the cryptocurrency will be close to 40 Ten thousand dollars. In September, the 180-day volatility of cryptocurrencies was close to the lowest point in history since October 2015. Judging from the average price of the month, Bitcoin has risen by more than 50 times, reaching its peak in 2017.”