The latest Bloomberg report titled “Bloomberg on crypto prospects for April 2021” provides the optimistic outlook for Bitcoin this year.
$400K per BTC by the end of the year
Bitcoin’s technical outlook in 2021 will remain dramatically improving if past patterns repeat themselves. The common components for strong annual rallies of the first cryptocurrency are low volatility and halvings are in a favorable position.
Bloomberg published a forecast for Bitcoin based on the past, but in a completely different macroeconomic scenario, especially with an influx of institutional investors.
Other factors also stand out: Bitcoin meets the need for digital reserve assets in a low-yield world. Indeed, BTC is an investment asset that far outperforms other popular investment products.
“The iterations of Bitcoin adoption, in our opinion, have led to a unique state of human nature that supports the growth of the cryptocurrency. Fund managers unwilling to cross the Rubicon and allocate even a small portion of the funds may be at risk as Bitcoin simply makes new ATH, advancing at unprecedented interest rates and high inventories” the report says.
Bitcoin Replacing Gold
Bloomberg highlights the dichotomy between Bitcoin’s recent performance and gold’s performance.
“The replacement of gold with Bitcoin is happening more suddenly than gradually”, says Bloomberg. “The adage that money flows freely where it is best treated describes what we believe to be a solid foundation for the price of Bitcoin.
This is not necessarily bearish for gold, which relies on support levels below $1,700 an ounce, but … Most indicators show a volatile global trend that supports the nascent digital currency as an asset reserve”.
Bitcoin is replacing its monetary predecessor as the preferred non-sovereign reserve asset in investors ‘ portfolios, and is seriously starting to displace traditional gold.
The supply of Bitcoin on cryptocurrency exchanges continues to decline
Another point that draws the attention of Bloomberg is that some crypto exchanges, such as Coinbase, are seeing a sharp drop in BTC stocks, indicating that Bitcoin holders are not going to sell their BTC stocks. The decrease in the BTC supply also puts upward pressure on the price.
Bitcoin price forecasts are very diverse: from $100,000 to $400,000 at the end of 2021, and no one knows what the new top of this bull run will be, which will last for who knows how long.
Therefore, Bloomberg is revising its forecast towards an increase in the price of Bitcoin, based on the cycles of previous years. The $400,000 BTC price will certainly please many holders of the crypto king.