Bloomberg: We expect Bitcoin price to go as high as $28,000
According to Bloomberg, expect Bitcoin price to retest the record high of $ 20,000 from 2017, which is now higher than ever. Even this number is expected to reach $ 28,000.
Bitcoin price shows a significant growth rate in the context of declining stocks
According to Grayscale, institutional investors are eager to find Bitcoin. In particular, GBTC has consumed about 25% of 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 the total supply. About two years ago, it accounted for 1%.”
Like the data published by independent crypto researcher Kevin Rooke, Grayscale has added 18,910 BTC to its Bitcoin Investment Trust since the halving, while only 12,337 Bitcoins have been mined since May 11.
Grayscale’s Bitcoin Trust bought 18,910 Bitcoins since the halving.
Only 12,337 Bitcoins have been mined since the halving.
Wall Street wants Bitcoin, and they don’t care what Goldman Sachs has to say. pic.twitter.com/Br6a4ijuze
— Kevin Rooke (@kerooke) May 27, 2020
However, the narrowing of the GBTC / BTC premium is a significant sign. In particular, the insurance premium gradually decreased in GBTC, although the substantial increase in capital flow indicated that the supply was removed from the market and matured. On a 30-day average, the Trust’s 20% premium compared to its underlying net asset value compared to the historical average of 39%.
Bitcoin moving upward with gold | Source: Bloomberg
For these reasons, it’s hard to explain why Bitcoin prices have dropped. And if nothing goes wrong, Bitcoin’s price will reach its highest level in 2017 of $ 20,000 and may even reach a new high of $ 28,000.
According to the report, another primary reason for the rise in Bitcoin’s price is the rapid growth of USDT. Last May, USDT market capitalization stood at $ 4 billion. A year later, it expanded to $ 10 billion.
The increase in circulation of stablecoins shows the adoption of more crypto assets: the interest rate associated with digital currencies with the dollar represents the need to trade and store value in the world’s reserve currency, without intermediaries.
The report stated:
“We can’t help but draw parallels to the adoption of paper currencies throughout history as the world today moves rapidly toward digitization.”
- Bitcoin Trading Across Russia Saw A Significant Rise Since March Amid The COVID-19 Lockdown
- Bitcoin Trading In India Exploded In Mid-May, Totals BTC Transactions Nearing $3 Million In A Single Week