Bloomberg has given its assertion on what the end of the year spells for the crypto market and say it has figured that if all things remain equal, Bitcoin would have a massive bullish run before the end of the year, the only question is if Bitcoin would move past its all-time surge record of $20,000. The reports by the firm point to the fact that Bitcoin could equal its all-time high record that was achieved in 2017 and even go as far as reaching the newly projected $28,000 mark. Furthermore, they printed at factors such as the ongoing coronavirus pandemic that has further strengthen the price of the leading digital asset despite falls recorded in the financial markets.
Bloomberg predicts $28,000 Bitcoin price surge
The firm points towards the growing interest in the digital asset by institutional investors as in the case of Grayscale investors another motivating factor for Bitcoin to make the predicted surge. Bloomberg was quoted as saying, “So far this year, its increasing AUM has consumed about 25% of new Bitcoin-mined coins vs. less than 10% in 2019. Our graphic depicts the rapidly rising 30-day average of GBTC AUM near 340,000 in Bitcoin equivalents, about 2% of the total supply. About two years ago, it accounted for 1%.”
Bloomberg also spoke about the harrowing of the GBTC/BTC comparison, saying it is almost at the crucial needed point. “The steadily declining premium in GBTC despite strong inflows indicates supply being taken off the market and maturation. On a 30- day average basis, the Trust’s 20% premium over its underlying net asset value compares with the historical mean of 39%,” the firm said. Bitcoin Futures is another major factor stated by the firm to drive Bitcoin to steady about the $10,000 region.
Can Bitcoin reach the $28,000 mark?
The report that was released by Bloomberg banked on the major factor that something must shake the crypto market for Bitcoin to make the expected surge up to $28,000. With Bitcoin price rise thanks to the adoption of Tether, the crypto saw its market capitalization move from $4 billion to $10 billion. With the increase in the adoption of stablecoins across the globe, the majority of the world population now adopt Bitcoin. Interest in digital links to the dollar represents the need to transact and store value in the world’s reserve currency without an intermediary. We can’t help but draw parallels to the adoption of paper currencies throughout history as the world today moves rapidly toward digitization,” Bloomberg says.