Bitcoin is said to maintain its steady rise and more than double from its current price to about $50,000 in 2021 says Bloomberg in their monthly report.
Bitcoin is experiencing its best days in 3 years. However, Bloomberg experts believe that even best days for Bitcoin are ahead.
“Bitcoin will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical and demand vs. supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap. The $10,000 mark has shifted to a critical support level after serving as the crypto’s resistance mark since 2017,” Bloomberg Crypto reports.
The recent increase in mainstream and institutional participation is one reason for this upward trend. While the demand for BTC has increased, the number of coins mined per day has halved to 900 from 2017’s 1,800.
Grayscale Bitcoin Trust, for example, has bought close to 70% of all Bitcoins mined since the May 11 halving. The management firm which manages assets like Bitcoin, Bitcoin Cash, Ether, Horizen, Ethereum Classic, Litecoin, Stellar, XRP and Zcash, started the year with $2 billion in assets and recently broke the $10 billion mark.
Data source Skew reports that interest in the Bitcoin futures listed on the Chicago Mercantile Exchange (CME) has gone from about $120 million in 2019 to an all-time high of over $1 billion recently.
Bloomberg analysts are certain this upward trend will continue due to the demand for bitcoin and gold created by the irregular policies applied by authorities to mitigating the economic implications of the coronavirus pandemic. The inflation-boosting stimulus programs implemented by central banks and some governments are not likely to stop any time soon.
Bitcoin’s third halving on May 11, is also a factor in this expected $50,000 resistance. Experts believe that if previous post-halving trends are anything to go by, prices could reach the $50,000 mark. 2016’s halving was followed by 2017’s $19,783.21 ATH. A similar trend can be seen after the first halving n 2012.
While experts at Bloomberg are bullish about Bitcoin performance, a panic sell-off similar to the one experienced in March is not far-fetched. They are confident, however, that prices will remain above $10,000.
“The $10,000 mark has shifted to a critical support level after serving as the crypto’s resistance mark since 2017”, the report says.
Panic over a perceived imminent recession caused by the coronavirus resulted in a global stock market crash and increased demand for cash in March. As a consequence, Bitcoin prices took a nose-dive to a $3,867 low. They went on to recover to $10,000 just before the halving in May.
7 months post-halving, BTC reached a record-breaking all-time high of $19,920.