Bitcoin has soared to a price of around $ 60,000 so far this year and has helped the broader cryptocurrency market hit a staggering $ 2 trillion.
Bitcoin price has soared around 400% since its last bull run began, when the long-awaited institutional rollout kicked in and Tesla billionaire Elon Musk sent the crypto market into a frenzy.
Given that many Bitcoin and crypto analysts are trying to figure out where the top will be in the market, a Bloomberg analyst has predicted that Bitcoin price could hit $ 400,000 this year – even if Musk is more in Bitcoin – Rivals like Dogecoin seem interested.
Bitcoin price has risen sharply in the past six months, up around 400%, and has exceeded its value … [+]
“The technical outlook for Bitcoin in 2021 remains strong if the patterns of the past repeat themselves,” wrote Mike McGlone, a leading commodities strategist at Bloomberg Intelligence, in his April market report, arguing that Bitcoin is “on a similar basis about 55 times the profit in 2013 “and 15x in 2017.”
“To hit price extremes similar to those of those years in 2021, crypto would approach $ 400,000 based on regression since the 2011 high. In September, crypto’s 180-day volatility hit roughly its all-time low of October 2015. As a result, Bitcoin rose a little more than 50 times on a monthly average to its peak in 2017. “
Bitcoin price has already doubled in the first three months of 2021, rising from just under $ 30,000. Bitcoin’s rapid rally has made it a $ 1 trillion asset, propelling it towards mainstream adoption.
According to McGlone, 2021 could “rhyme” with 2017 and 2013, as every year it follows that Bitcoin supply has been reduced by a so-called halving when the reward given to those who secure the Bitcoin network has been halved.
“The year after a supply cut (halve) is what 2021 has in common with 2017 and 2013, along with subdued volatility. Initial support is around the 2021 average price of $ 44,000 through March 25th.”
The Bitcoin price for 2021 could “rhyme” with 2013 and 2017, according to Bloomberg analysis. … [+]
Meanwhile, Tesla’s recent $ 1.5 billion purchase of Bitcoin could mark a “turning point” for Bitcoin and trigger a “risk-off” shift.
“From our point of view, it makes sense that the stock wealth would be partially diversified into Bitcoin,” wrote McGlone.
This is backed up by a survey this week that found that institutional investors and money managers expect a surge in companies adding bitcoin to their treasury reserves.
Over the next two years, 81% of surveyed investors and managers expect an increase in the number of companies using Bitcoin for their treasury reserves. This was the result of the survey commissioned by Nickel Digital Asset Management.
“A growing number of companies, including automaker Tesla, business intelligence company MicroStrategy, and mobile payment processor Square, have recently non-trivial and billion-fold allocating bitcoin as part of their treasury reserve strategies,” Nickel said Digital asset management chief executive Anatoly Crachilov said in a statement alongside the research.
“This, along with the structural assignments announced by leading global asset managers including Paul Tudor Jones, Bill Miller, Ruffer and Guggenheim Partners, to crypto assets, is a great endorsement of the emerging Bitcoin Store of Value functionality.”