According to Bloomberg Crypto Outlook, a new ATH for BTC is coming in 2020.
This is what emerges from the June report, which states that the company expects the price of bitcoin to exceed the absolute highs recorded in December 2017 this year, to the extent that it can even reach around $28,000.
The ATH, which is the historical peak of the price of bitcoin, was reached on December 17, 2017, in the middle of a speculative bubble, when it barely exceeded $20,000.
The price never returned to those levels and remained above $18,000 for only five days.
Coronavirus pushes BTC
According to Bloomberg’s report, the crisis generated by the Coronavirus Covid-19 has accelerated Bitcoin’s maturation as a financial asset, as it has proven its strength by becoming increasingly attractive to institutional investors.
Bloomberg mentions Grayscale, for example, who purchased 25% of all BTC mined during 2020.
The report also shows that the halving on May 11th reduced the market offering, and sets the current price support level at $8,000.
As far as the price evolution over the year is concerned, the analysis states “something needs to go really wrong” for the price of BTC not to increase in value.
According to Bloomberg’s calculation, if the price fluctuates around the recent fluctuation band, the peak in 2020 could be about twice as high as last year.
Therefore, with the 2019 ATH approaching $14,000, the 2020 high could go well over $27,000.
In other words, since BTC’s ATH price is still at $20,000, this analysis actually states that there would be a good chance of a new ATH in 2020.
Bloomberg and the growth of Tether
In support of this hypothesis, Bloomberg also cites the rapid growth of USDT, which rose from around $4 billion to over $9 billion in a year, indicating increased adoption of crypto assets.
In particular, interest in digital versions of the dollar highlights the need to trade and retain value in the world’s reserve currency without the need for intermediaries.
In addition, Bloomberg analysts emphasize the parallelism of this process with the adoption of paper currencies throughout history, in a world that is now moving rapidly towards digitalization.
The magazine also points out that BTC futures could help boost growth above $10,000, given the favourable trading trends for these contracts, in particular on the CME.
These trends would represent a kind of maturation of this asset towards the mainstream, as it emerged last year when it exceeded $10,000.
In the absence of SEC-approved BTC ETFs on the US market, it is precisely the CME futures that allow regulated BTC trading in the US.