https://markets.businessinsider.com...le-this-year-cryptocurrency-2020-6-1029281615 Bloomberg expects bitcoin to revisit its record high reached in 2017 and double to $20,000 this year, an analyst note published Tuesday said. The firm sees bitcoin breaking away from other cryptocurrencies and says the digital currency has increasingly favorable fundamentals and technicals. Bloomberg says that the same forces pushing gold higher also support bitcoin and that the coronavirus is accelerating bitcoin's maturity relative to the stock market. Visit Business Insider's homepage for more stories. Bloomberg is taking the opposite side of Goldman Sachs, saying in a note published on Tuesday that bitcoin could double to $20,000 this year. Last week, Goldman listed five reasons investors should avoid bitcoin. The most popular cryptocurrency has so many favorable fundamental and technical factors that "something needs to go really wrong for bitcoin to not appreciate," Bloomberg said. The company said history indicated that bitcoin should return to $20,000 in 2020, representing roughly double its current levels. "Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016's trend," Bloomberg said. Bitcoin's maturation, fueled by the growing acceptance of digital currencies, the ability to trade bitcoin futures, and a steady decline in volatility, should keep it tilted toward price appreciation, the research note said. Additionally, Bloomberg said it expected bitcoin to appreciate if the stock market rolls over. Technically, bitcoin has solidified the $8,000 level as support and could move higher if it decisively breaks above the $10,000 level — that echoes recent comments from the technical analyst Katie Stockton. Bloomberg said it thinks bitcoin is benefiting from the coronavirus pandemic, for several reasons. First, historic declines in equity markets because of the virus didn't spill over to bitcoin, as a brief dip in the cryptocurrency was "promptly rejected," Bloomberg said. Second, the virus is accelerating the shift away from paper currency toward digital. And third, new quantitative-easing policies from central banks around the globe are "helping independent stores-of-value such as gold and bitcoin," Bloomberg said. But Bloomberg's bullish view on bitcoin doesn't translate to other cryptocurrencies like ether. "We see little upside in the ETH price absent a rising tide from bitcoin," Bloomberg said, adding that bitcoin "is breaking away from the pack in terms of adoption and is supported by almost-ideal macroeconomic conditions for stores-of-value amid quantitative easing." Bloomberg joins other influential investors in being bullish on bitcoin, including the hedge-fund manager Paul Tudor Jones and the billionaire investor Chamath Palihapitiya. Bitcoin traded up 1%, to $9,762, on Wednesday.
It's a good bet. That thing looks like it's ready to move big soon. With that said, no clue the fascination with it. It's got a cult following by annoying hipsters and rookies. It's an asset class just like anything else. Get over it.
I'm not sure Bitcoin is being driven by 'support and resistance' dynamics or maturity of the asset as the article suggests but by innovation and its correlation with other assets. Bitcoin's halving and now Ethereum 2.0 and because blockchain is one of the primary drivers of the next growth phase. Bitcoin has a positive correlation with equities and gold and a negative correlation with the USD (obviously) for the BTC/USD pair.
There are 2 schools of thoughts 1. Bitcoin will double to $20 000, $100 000, or even $1 000 000 because of very high intrinsic value and its superior very safe block chain technology. 2. Bitcoin will drop to $1000, $100, or even $1 Because of its poor security and its zero intrinsic value. BTC supply is unlimited and infinity. You can simply add BTC II, BTC III, BTC IV .... cryptocurrency chief could go India and died there. Only cryptocurrency patent writers & those who already own BTC like the 1st school of thought. There are lots of patent writers by the way. traders wouldn't bother about these school of thought. who knows, some traders might buy and sell bitcoin at the same time and keep the positions open for very long.
I used to not care for Ethereum and didn't think there's much use for its smart contract dapps platform, until recently when I started looking at stablecoins as a way to remove the bitcoin price-volatility risk if I hit certain price targets on the next bull market run. In the current ZIRP environment, there's a thriving financial system that operates on the blockchain and offers over 8.6% APY on USD*. https://blockfi.com/crypto-interest-account/ https://celsius.network/ https://www.totle.com/
Why do you think BTC’s supply is unlimited? Forks of the code do not share the same network effects nor have the same valuation. Now if you were referring to fiat, that supply is unlimited.
Although Bloomberg and Goldman have opposing views, they can both be right. That is just the nature of cryptos... But when the pandemic hit, instead of raising, Bitcoin took the same hit as the markets, so that doesn't bode well for wealth escaping into cryptos....