Bitcoin's 2020 rally has somewhat stalledbut the bitcoin price could be poised to soar. <\/p>\n
The bitcoin price, up over 30% since January 1, has been hovering around $10,000 per bitcoin for the past month. <\/p>\n
Now, bitcoin could double to $20,000 before the end of the year, returning to its 2017 all-time high, according to a bullish Bloomberg analyst. <\/p>\n
Bitcoin has been treading water for the past few weeks, with the price struggling to break over the ... [+] psychological $10,000 per bitcoin level. <\/p>\n
\"In the unlikely event of a significant change for the worst, we expect the bitcoin price to continue appreciating,\" said Bloomberg's senior commodity strategist Mike McGlone.<\/p>\n
\"This unprecedented year of central-bank easing is accelerating the maturation of the first-born crypto toward a digital version of gold, while accentuating oversupply constraints in most of the market.\"<\/p>\n
Never-before-seen central bank stimulus measures and fresh quantitative-easing is \"helping independent stores-of-value such as gold and bitcoin,\" McGlone found, with the bitcoin price possibly climbing as high as $28,000 this year.<\/p>\n
McGlone also pointed to bitcoin's strong rebound from its March coronavirus-induced crash to under $4,000 and the coronavirus pandemic accelerating the trend away from physical cash and toward digital money.<\/p>\n
Meanwhile, bitcoin's third supply squeeze last month could be a catalyst for the bitcoin price to begin climbing, according to McGlone.<\/p>\n
In May, the number of bitcoin rewarded to those that maintain the bitcoin network, called miners, was cut by halfdropping from 12.5 bitcoin to 6.25.<\/p>\n
Bloomberg's Mike McGlone thinks \"something needs to go really wrong for bitcoin to not appreciate.\"<\/p>\n
\"Bitcoin is mirroring the 2016 return to its previous peak,\" McGlone said. <\/p>\n
\"That was the last time supply was halved, and the third year after a significant peak. After 2014's 60% decline, by the end of 2016 the crypto about matched the 2013 peak. Fast forward four years and the second year after the almost 75% decline in 2018, bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016's trend.\"<\/p>\n
Elsewhere, 2020 will see \"increasingly favorable technical and fundamental underpinnings\" for bitcoin, with adoption, which McGlone sees as the primary bitcoin metric, remaining positive.<\/p>\n
Bitcoin buy-to-hold interest from institutions such as Grayscale, the world's largest bitcoin investment trust, and growth in bitcoin futures open interest has boosted bitcoin's maturity and helped ease volatility. <\/p>\n
\"Maturation, greater depth and plenty more exposure via futures should continue to suppress the first-born crypto's volatility, clearly keeping it tilted toward price appreciation,\" according to McGlone. <\/p>\n
However, bitcoin appears to be \"breaking away\" from the wider cryptocurrency market. <\/p>\n
\"We see little upside in the [ethereum] price absent a rising tide from bitcoin,\" McGlone said. <\/p>\n
\"The pre-eminent crypto is breaking away from the pack in terms of adoption and is supported by almost-ideal macroeconomic conditions for stores-of-value amid quantitative easing.\"<\/p>\n
The bitcoin price is currently around half its $20,000 per bitcoin high but some think it could ... [+] return to that level later this year. <\/p>\n
McGlone's analysis echos others who see bitcoin climbing this year, with a \"fourth crypto cycle\" potentially approaching. <\/p>\n
\"The 2017 cycle spawned dozens of exciting projects in a wide range of areas including payments, finance, games, infrastructure, and web apps,\" Andreessen Horowitz partners Chris Dixon and Eddy Lazzarin wrote in a blog post last month.<\/p>\n
\"Many of these projects are launching in the near future, possibly driving a fourth crypto cycle.\"<\/p>\n
The bitcoin and crypto community was set alight last month by news legendary macro investor Paul Tudor Jones is buying bitcoin as a hedge against the inflation he sees coming as a result of unprecedented central bank money-printing, saying bitcoin reminds him of the role gold played in the 1970s.<\/p>\n
Earlier this week, one of the most closely-watched bitcoin analysts, an anonymous strategist who claims to be a member of an institutional investment team that manages around $100 billion in assets, has released an update to his so-called stock-to-flow model, suggesting the bitcoin price could be about to surge to around $100,000.<\/p>\n
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