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According to Bloomberg, Bitcoin price has an upper hand in comparison to Gold based on underlying factors.
In a newly published report dubbed Bloomberg Crypto Outlook April edition, the Bloomberg researchers suggest Bitcoin price could rally and close 2021 at $400,000. Bloomberg analysts used historical data, particularly a year later after the past halving events. According to the researchers, Bitcoin price is set for a similar rally as 2013 and 2017 that saw the asset at its highest point respectively.
“The technical outlook for Bitcoin in 2021 remains strongly upward if past patterns repeat. Common companions for strong annual rallies in the first-born crypto – low volatility and halvings – are aligned favorably. Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since 2011 high. In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month’s average price, Bitcoin increased a little over 50x to the peak in 2017,” the report noted.
Bitcoin Price and Bloomberg Crypto Report
Bitcoin price has traded around the current levels, below $60k and above $50 for the past few weeks. During that period, several fundamental aspects have accumulated that favor the bull market in the coming months. Besides, the technical point of view suggests the asset is on verge of a major breakout.
“Little changed near $58,000 for over a month, Bitcoin appears to be a bull market resting for the next leg of its stair-step rally. Its 20- week moving average has advanced above $40,000 for the first time,” Bloomberg noted.
According to Bloomberg, Bitcoin price has an upper hand in comparison to Gold based on underlying factors. Among them, Bitcoin price has significantly increased during the pandemic whilst Gold price has remained around $1700 an ounce for almost a year.
Moreover, Bitcoin has a fixed supply and has its volatility stabilized thus attracting institutional investors. Bloomberg also noted that the amount of Bitcoin units leaving cryptocurrency exchanges has increased, with the number of Bitcoins in exchanges at its lowest.
In its interpretation, the low amount of Bitcoin units in exchanges is a precursor to an imminent bull market. “Our graphic depicts the percentage of Bitcoin held on exchanges well below the peak from 2020, which marked a selling extreme. The patterns in this dataset from Coinmetrics suggest the Bitcoin price will gain elevated risk of sellers dominating buyers when the amount of the crypto held on exchanges exceeds the previous high. That’s what happened around the price high in 2017,” the report explained.
The report also noted that Bitcoin price remain bolstered by increased adoption and demand by institutional investors. Particularly as depicted by Grayscale Bitcoin Trust and also by Tesla’s involvement with digital assets.