Bitcoin is expected to reach $ 20,000 this year, fueled by the printing of government money and Covid-19: Bloomberg

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Bloomberg predicts bitcoin will hit its $ 20,000, and possibly $ 28,000, record this year

According to the company in June reported,

“Something must really go wrong for Bitcoin to not appreciate its value.”

Bloomberg points to quantitative easing and coronavirus pandemic as fuel for bitcoin maturity, especially in relation to the decline in the stock market and crude oil. Both factors will drive the price of bitcoin (BTC) lift.

Bitcoin is expected to reach $ 20,000 this year, fueled by the printing of government money and Covid-19: Bloomberg 1

“Covid-19 accelerates the change of paper money and stimulates a lot of quantitative easing, which helps independent value stores like gold and bitcoin,” notes the report.

“Last year, the maximum was around $ 14,000, which would translate to almost double in 2020 if you tour with the recent group, and would not mean much,” he said. he adds.

Bitcoin has exceeded $ 10,000 twice since its power failure event three weeks ago, but has struggled to stay above the key level as investors quickly abandoned the asset. His latest action involved a quick rally to $ 10,400 on June 1, followed by a 17% drop a day later.

The price, a increase by about 33% since the start of the year, it has traded at $ 9,549 at the time of printing, 0.5% in the past 24 hours.

By describing bitcoin as a “bull at rest”, institutional interest has increased, the number of BTC assets has increased. Addresses, futures and mass adoption will take pioneering digital assets to the next level.

The report specifically mentions Grayscale Investment's aggressive crypto acquisitions. Consuming 25% of all newly created BTCs In 2020, the grayscale Bitcoin Trust Fund is by far the largest instrument traded for trading crypto assets, facilitating institutional adoption, he said. The Fund manages more than 340,000 BTC, or $ 3.25 billion, on behalf of investors.

Bitcoin's active addresses, which peaked at a two-year high of 891,000 this year, represent growing adoption and this will help the BTC stay above $ 10,000. “Unless the directions forward are suddenly reversed, history indicates that Bitcoin has a propensity to appreciate,” he said.

The report notes that even though open term interest does not represent a large part of the total bitcoin supply, it represents 50,000 BTC, “Futures are important as the main gateway for reference cryptography to become an asset class. conventional”.

“Maturation, greater depth and much greater exposure through futures contracts should continue to suppress the volatility of the first cryptography, keeping it clearly oriented towards price appreciation”

What do you think of the Bitcoin price forecast? Let us know in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

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