Bloomberg analysts released an analysis report on Bitcoin developments in 2020 on Monday. According to him, Bitcoin has the potential to reach $ 14,000 before halving, which takes place in May 2020.
The weak volatility of the dollar and the stock market continues, and geopolitical tensions increase.
“Bitcoin’s initial reaction to the US attack, which killed one of Iran’s most powerful generals, was a good test of our premise that cryptocurrencies are maturing towards a digital version of gold,”
is shown in the report.
On Wednesday, Bitcoin has risen to its maximum value in the last seven weeks. At the same time, gold rose to $ 1,600 for the first time in 2013.
Bitcoin digital gold
I have often encountered the expression Bitcoin digital gold, in part, because it is a limited asset, similar to precious metal. Half the block rewards will reduce the number of new BTCs issued on the market. Automatically, this will increase supply pressures for investors.
Bitcoin’s supply is projected to grow by about 2.5 percent by 2020, while by 2021 it will reach just 2%.
Increasing investment in bitcoin could take many forms, Bloomberg analysts believe. The derivatives market is expanding rapidly and will allow institutional investors to gain exposure to the asset class. This could have side effects on price and lower volatility, thus strengthening Bitcoin’s status as a deposit.
The offer extends to other cryptocurrencies
If Bitcoin can still be too volatile for mass adoption, investors may be more prone to stable cryptocurrencies. The Bloomberg report predicts that the Tether market cap will continue to expand this year. At the same time, the rest of the altcoins will struggle to stay in the attention of investors as the supply exceeds the demand.
“Bitcoin should have a much better performance than other crypto assets in 2020, as it is a unique and prized digital version of gold,”
the report continues.
“Bitcoin wins the adoption race, especially as a value deposit in an environment that favors quasi-independent currencies.”