Bitcoin to Hit $500,000 Per Coin or Fail
Experts at Bloomberg L.p, one of the world’s leading financial, software, data and media company with headquarter in Midtown Manhattan, New York City, has predicted that the world’s leading cryptocurrency Bitcoin could hit $500,000 per coin and become the world’s digital gold given its new gold-like characteristics.
The experts posit that Bitcoin limited supply capped at 21 million coins and rising demand supported by macroeconomic would bolster the cryptocurrency to the same market capital of gold at $500,000 per coin. Or it could fail.
Also, the declining volatility in the once-troubled unregulated digital coin was highlighted as one of the key factors that it has gradually adjusted or adjusting to traditional assets. This, the experts said shows Bitcoin is gaining an upper hand against equities and gold.
“The rapid increase in tradable, mostly speculative coins indicates the supply, competition and ease-of-entry overhangs for broad market prices,” they stated.
Speaking on Bitcoin’s similarity with gold’s price action, the experts said the price of the coin should keep appreciating for similar macroeconomic reasons that help gold.
“The primary attributes that underpin the price of gold and Bitcoin — limited supply, store of value, diversifier and quasi-currency — will persist in a world of unprecedented quantitative easing, in our view. The benchmark crypto has won the adoption race among myriad copycats and is maturing into a digital version of gold,” Bloomberg analysts explained.
Accordingly, they noted that “Like the metal, the benchmark crypto’s bull-market has corrected sharply and had a period of disdain. Fundamentally and technically, a Bitcoin base for recovery is firming, but the broader crypto market appears driven more by speculative excesses.”
In a 12 months chart, they explained Bitcoin-gold correlation. They said after advancing to as high as $11,400 per coin and $200 billion market capital just in about 11 years of existence that the first cryptocurrency is now consolidating gains and being pulled along by gold in 2020.
They added that “We see little to halt the “gold higher, Bitcoin following” pattern, other than normal bull-market nuances of back-and-fill from extended levels. Old resistance about $10,000 is now good Bitcoin support.”