Bloomberg: "Bitcoin will approach record high of about $20,000 this year"

Bloomberg: “Bitcoin will approach record high of about $20,000 this year”

As Cointelegraph summarizes, “Bloomberg says that all signs point to Bitcoin going on the major bull run in 2020, the only question is whether it will break the all time high of $20,000. “The latest report from Bloomberg reveals that the company expects Bitcoin (BTC) to retest the record highs from 2017, and may even go as high as $28,000. […]

By Chris Sykora · June 3, 2020

Bloomberg: “Bitcoin will approach record high of about $20,000 this year”

As Cointelegraph summarizes, “Bloomberg says that all signs point to Bitcoin going on the major bull run in 2020, the only question is whether it will break the all time high of $20,000.

“The latest report from Bloomberg reveals that the company expects Bitcoin (BTC) to retest the record highs from 2017, and may even go as high as $28,000.

“The report suggests that COVID-19 has accelerated Bitcoin’s maturation as an asset, showing its strength amid declining equities. In addition, it points to the ever-increasing appetite from the institutional investors, and Grayscale, or GBTC, in particular; which has been consuming about 25% of the the new supply:

‘So far this year, its increasing AUM has consumed about 25% of new Bitcoin-mined coins vs. less than 10% in 2019. Our graphic depicts the rapidly rising 30-day average of GBTC AUM near 340,000 in Bitcoin equivalents, about 2% of total supply. About two years ago, it accounted for 1%.’

“Bloomberg finds the narrowing of GBTC/BTC premium a telling sign:

‘The steadily declining premium in GBTC despite strong inflows indicates supply being taken off the market, and maturation. On a 30- day average basis, the Trust’s 20% premium over its underlying net asset value compares with the historical mean of 39%.’

“The report says that ‘something needs to go really wrong’ for Bitcoin not to increase in value…”

Read the full story on Cointelegraph and see the report from Bloomberg.