Why Bloomberg analysts expect the Bitcoin price to jump over $ 10,000 soon
Bitcoin did not have the best second half of the year and plummeted from its high for the year in June on 7 $, where he currently trades. Despite the distressing background, Bloomberg's Mike McGlone believes Bitcoin has a positive outlook on “2020 and the next decade” due to several factors.
Several factors, according to McGlone, could bring the cryptocurrency back into the five-digit range in the near future. For many investors in the industry, that would be a welcome surprise – as many believe Bitcoin has returned to “crypto-winter”.
Bitcoin should $ climb?
Bloomberg's McGlone believes that the bull trend for Bitcoin is developing rapidly, as long as the most important support is 6 500 $ in the near future Stock has. Indeed, the analyst even believes that it is “only a matter of time” until BTC adds the key resistance . Why do you ask? Well, the Bloomberg analyst gives several reasons:
First, he points out that Bitcoin is also involved in a gold rally. The precious metal is tending to lower at the moment after peaking in the middle of the trade war talks last summer. However, the macroeconomic picture could start to favor gold (and thus Bitcoin)
A possible recession, a resumption of trade warfare under Hong Kong and Xinjiang regulations, and other fundamental issues in the traditional system could encourage alternative investments.
Secondly, according to McGlone, there would be a perfect storm for the cryptocurrency on their “basic premises”: mass adoption and a fixed cap. McGlone:
Much can go wrong with a nascent asset, but unless the basic premises are reversed, there is a greater likelihood of price increase than loss. “
Other analysts also believe the bull trend is intact
Not only McGlone believes that Bitcoin will have a positive trend in the coming year. Thomas Lee of Fundstrat Global Advisors recently spoke on the latest developments in the equity and cryptocurrency markets in the CNBC Market Alert segment. The host also asked for Bitcoin, particularly as to whether the analyst believes that the downward trend since June 2020 will continue.
Lee denied and stated that he expects a positive development for Bitcoin for He points in particular to three positive factors:
1. The strong growth of US equities, especially S & P be deployed. According to Lee, his company has observed that there is a correlation between a strong performance of Bitcoin and the S & P 500 index.
. 2 Bitcoin's Block Reward Reduction, also known as “Halving,” will come in six months. Lee believes this could be beneficial to BTC investors. Because: The event acts as a big negative supply shock in a market that analysts say will increase demand.
. 3 In the end, the Fundstrat leader believes that although China has taken a tough stance on Bitcoin so far, the authorities in the country still favor digital assets because they are pro-blockchain.
Text Proof: newsbtc