Bloomberg Crypto outlook for June “Bitcoin $10,000 Gaining Support” believes that all is set for Bitcoin to go on a major bull run in 2020 and retest the $20,000 all time high of 2017.
The report from Bloomberg reveals the expectations of the company concerning Bitcoin price in 2020. Bloomberg says “Something Needs to Go Really Wrong for Bitcoin to Not Appreciate“. It is believed that 2020 is about increasingly favorable technical and fundamental underpinnings for Bitcoin, and less so for the broader crypto market and as a result Bloomberg expects Bitcoin to do a double of 2019 peak price of $14,000 that would translate into Bitcoin hitting $28,000. Bloomberg reports that there has been a significant increase in the number of active bitcoin addresses holding bitcoin:
The highest level of active addresses in about two years favors a higher Bitcoin price, if history is a guide.
Stablecoins and Covid-19 Contributing to Bitcoin Price Rising
The report believes the rapid increasing growth in the market cap of stablecoins like Tether(USDT) is contributing to the shift from paper money to digital currencies as stablecoins support Bitcoin price. Covid-19 has also played a significant role in regards this shift to digital currencies and stimulating loads of quantitative easing, which is helping independent stores of value like gold and Bitcoin. The report states clearly that “Bitcoin Appreciation Tethered to Stablecoins”
See Also: Tokenization of Assets on the Blockchain
Bitcoin On-Exchange Instruments and Bitcoin Futures Stabilizing Bitcoin Price
Despite the lack of a United States exchange traded fund(ETF), Bitcoin on-exchange instruments and Bitcoin futures are providing support for Bitcoin price. Bitcoin on-exchange traded instruments, led by the Grayscale Bitcoin Trust(GBTC) are absorbing a significant portion of Bitcoin supply. Measured based on asset under management(AUM), GBTC has absorbed about 25% of Bitcoin mined so far in 2020.
Bloomberg on Bitcoin futures:
Bitcoin futures are significant as a primary gateway for the benchmark crypto to become a mainstream asset class.
Based on the performance of Bitcoin post Bitcoin halving of 2016 when it hit a high of $20,000 in 2017. We believe all is set for a major Bitcoin bull run in 2020 according to the Bloomberg Crypto outlook for June.