According to a recent report from Bloomberg, the next step for bitcoin’s price could be $50,000.
The $20,000 was surpassed in mid-December and the $30,000 in early January. Yesterday, January 7th, 2021, the $40,000 mark was also momentarily exceeded for the first time in history, making a new all-time high.
The report, compiled by Bloomberg Intelligence and titled “Bitcoin May Be Better Than Gold” argues that $50,000 may be the “next stop,” and that Bitcoin may be able to continue to attract even veteran gold investors.
Specifically, it states that the odds of the price returning to $20,000 are declining, while those of further growth towards a price of $50,000 and a market capitalization of around $1 trillion (it is currently $725 billion) are increasing.
The report also states that the regulatory process is causing this asset to mature much more than the other 8,000 cryptocurrencies, partly because most of these are not truly decentralized projects.
“Bitcoin has crossed the Rubicon into the mainstream and still appears in early days of price-discovery”.
Bloomberg, the price of bitcoin like a tsunami
The 1 trillion market capitalization value, corresponding to a BTC price of about $53,000, is called a “key hurdle,” yet the path to this threshold is supported by Bitcoin’s institutional and broad adoption, which has turned it into a tsunami of sorts thanks to which it is proceeding briskly toward the next price resistance level, located precisely at $50,000.
The report also mentions the two years following the two previous halvings, highlighting how the price of bitcoin increased 55 times in 2013 and 17 times in 2017, while a price just above $50,000 would correspond to an increase of less than 2 times from the price at the beginning of the year.
It is worth recalling that the first halving occurred in 2012, the second in 2016, and last year the third occurred.
However, the current state of progress, if this were the trend, would be similar to what the price of bitcoin had in May 2017, that is, when the price doubled the level reached during the previous all-time high, so the one underway would be a definitely accelerated pace. This is why they suspect that sooner or later there will be a correction anyway.
Regarding the comparison with gold, the report points out that Bitcoin is more portable, tradable and transparent, and is spreading in a world that is increasingly moving to digital.
“We view Bitcoin and gold as portfolio companions”.
On the dollar’s inflationary risks, it adds:
“Rapidly rising G4 central-bank balance sheets as a percentage of GDP provide favorable macroeconomic underpinnings for Bitcoin in a world increasingly going digital”.