Bloomberg has issued a new report entitled "Bloomberg Crypto Outlook: Bitcoin Trend, Adding Zeros" in which described a potential outcome for bitcoin's (EXANTE: Bitcoin) price in the long-term.
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The analysts admit that they do not know what catalyst might trigger bull run to new highs, however, demand vs. supply metrics "remain price-positive."
"If the crypto echoes its past gains, with some maturation, about double the time period it took to add a zero to $1,000 could get its price to $100,000 in 2025," the report says.
Bloomberg experts also claim that bitcoin, like gold, is in transition to being a beneficiary of increasing stock market volatility. The analysts' chart depicts the highest bitcoin-to-gold 12-month correlation in the database since 2010. The crypto 12-month measure vs. the S&P 500 is elevated, but has been higher, analysts highlight.
Moreover, Bloomberg forecasts market cap of Tether to surpass Ethereum next year. The analysts believe that increasing adoption of stablecoins "is likely a precursor for central bank digital currencies and promises to be more enduring than altcoin speculative excesses."
Earleir in June, Bloomberg Intelligence analyst Mike McGlone said that the price of the largest crypto by market cap could jump up to $20,000 by the end of 2020.
McGlone said the reason the top cryptocurrency could exceed the December 2017 high are both technical and fundamental factors are "increasingly favorable" for BTC.
These factors include bitcoin's maturity against other investment options, increased open interest in futures and increased interest from institutional investors.
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