Bloomberg has just released its latest view of the crypto markets, which is why Bitcoin can hit its record high of around $ 20,000 this year.
The main technical analysis by Bloomberg Intelligence strategist Mike McGlone points to BTC’s previous price movements after the first and second halves.
If past is prologue, McGlone says BTC will follow a 3-year cyclical pattern, reaching $ 20,000 by the end of 2020.
Bitcoin reflects the return of 2016 to its previous peak. That was the last time supply was cut in half, and the third year after a sharp spike. Our image shows Bitcoin’s marking time for a third year after the 2017 parabolic rally.
Following the 60% decline in 2014, the crypto was roughly at the peak of 2013 at the end of 2016. Four years ahead, and the second year after dropping nearly 75% in 2018, Bitcoin is believed to be the record high of about $ 20,000 are approaching this year, if it follows the 2016 trend. “
Bloomberg also highlights different stories about Bitcoin emerging as a digital version of gold, arguing that the same macroeconomic factors affect the prices of both assets. With gold on the verge of peaking since a record high in 1980, Bloomberg believes Bitcoin’s price may also rise higher due to the same underlying factors.
The report also mentions the Grayscale Bitcoin Trust, which is increasing in popularity and responsible for purchasing massive amounts of BTC this year.
According to McGlone, the near doubling of open interest rates in futures markets and the stabilization of futures premiums also support the story of institutional buy-and-hold interest rates.