A new Bloomberg report claims that bitcoin will approach its record all-time high of $20,000 amidst the fallout from COVID-19 and other market accelerators.
According to Bloomberg’s June 2020 Crypto Outlook report, bitcoin has been gaining support around the $10,000 price point since the halving. Senior commodity strategist Mike McGlone writes that something would have to go “really wrong” for BTC not to continue appreciating throughout the remainder of the year.
The report reads,
The same forces buoying gold support bitcoin, yet the supply of the crypto is more constrained. Adoption, by default, is the primary Bitcoin metric, and our indicators remain positive.
Bloomberg claims that bitcoin is consolidating for a bull run and has gained an advantage over the broader crypto market. The report highlights bitcoin’s limited supply relative to most altcoins, which investors will find increasingly attractive in light of central-bank monetary easing measures.
The report also predicts that bitcoin will return to its all-time high of $20,000 by the end of the year, with the crypto-asset mirroring chart features seen during the last block reward halving in 2016.
In addition to bitcoin, Bloomberg claims that the COVID-19 pandemic has been a potential accelerator for Facebook’s libra and a potential Fed-backed digital currency. The report argues the recent outbreak has highlighted “vulnerabilities” in the world’s cash-based system built on outdated technology and could give new life to Facebook’s libra project.
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