Bitcoin is going to explode this year. This is the verdict, according to Bloomberg’s crypto view of 2020.
As part of a recent report, Bloomberg market analyst Mike McGleon details exactly how BTC can peak in 2019. Spoiler alert: This is mostly related to the gold correlation.
The relationship with Gold Bitcoin is on the rise in BTC
The relationship between Bitcoin and gold is on the rise. | Source: Bloomberg
Bitcoin is not called “digital gold” for free. Its connection to precious metal has been piously cited by experts and cryptocurrency enthusiasts alike for years – and not for good reason. The Cryptocurrency Flag contains countless features that mimic the yellow metal. Both are “mined.” Both are transferable. Both can be divided. But most importantly, both are limited assets and claim to be most convenient as safe haven.
One person’s Bitcoin is another person’s gold
This is one of the critical points raised in the Bloomberg report. McGlone characterizes 2020 as a major year for safe haven assets, suggesting that movements in gold will serve as a gift of performance for BTC.
The analyst specifically highlights the latest key to Bitcoin’s value following the US murder that shaped senior Iranian top general Qassem Suleimani:
Bitcoin’s initial response to [January. 3] An American air strike that killed one of Iran’s strong generals was a good test for our assumption that the older crypto is maturing towards a digital version of gold.
Soon after Suleimani’s death, Bitcoin and gold took place. The precious metal reached a seven-year high of $ 1,600, while its digital groom followed it, and saw a 20% increase.
Providing further evidence of Bitcoin as a safe haven asset is its correlation – or lack thereof – with the US dollar. According to the report, bitcoin shows that “Bitcoin’s biggest negative correlation for 52 weeks” has been since 2010. This relationship is largely the same between gold and greenback as BTC and USD.
Bitcoin profit is bad news for Altcoins
Regarding price action, the report remained quietly optimistic. It said BTC would appreciate in 2019. While they rule out a record high of all time, analysts see Bitcoin approaching $ 14,000 again.
The rest of the market should be frozen, with market saturation being the root of the problem:
Too many crypto assets competing for adoption will leave broad market prices at a disadvantage, in our opinion. The future of price estimation for cryptocurrencies is unlikely until you reduce the rapidly growing supply.
Mainstream adoption on the horizon
Among other things, because of its position as a hedge against global risk, Bitcoin supposedly “wins the adoption race.” The report says that last year’s bitcoin market dominating altcoins will continue into 2020.
According to Bloomberg, adoption data is being measured by a growing interest in derivatives trading:
In our opinion. Future trade represents mainstream adoption, which is a major measure of the global scale digital scale store, a kind of currency with limited supply.
Despite its uninformed beginnings, Buckett – finally the long-awaited future of the Intercontinental Exchange – is finally showing up. Just last month, she was able to break the previous record of all time after passing the $ 47 million bitcoin futures contracts. Fundstrat’s Tom Lee seems to share McGleon’s sentiment, pointing out that Buckett’s growth rate is “a pure proxy for institutional Bitcoin demand.”