Bloomberg analyst says Bitcoin’s price is on track to $ 100,000 in 2025

• Bitcoin is in a period of low volatility and could reach $ 14,000 in 2020 and $ 100,000 in 2025, according to a Bloomberg analyst.
• The shortage of supply and the state of the US economy will benefit the price of BTC.

---

Bloomberg’s latest report on Bitcoin is highly bullish. Published by Mike McGloone, Senior Commodities Strategist for Bloomberg Intelligence, predicts a continuation of the “historical trend” that Bitcoin has had: the addition of zeros to its price. The report was released in a context of high expectations due to the US elections, traditional market trends and a possible new stimulus package that seems unlikely to be approved.

Within the crypto space, the allegations against the BitMEX card were an event that was supposed to have a negative impact. However, Bitcoin managed to stay above the $ 10,500 support level. At the time of release, Bitcoin is trading at $ 10,632, a loss of 0.89% in the past 24 hours. On the weekly and monthly charts, BTC records a loss of 1.98% and a slight gain of 3.54%, respectively.

Is the rise in the price of bitcoin imminent?

According to McGloone’s report, Bitcoin’s demand indicators are positive and “point to a revisitation of the 2019 high” ($ 14,000) perhaps at the end of 2020. In this sense, the report indicates that Bitcoin’s fundamentals have remained strong. Specifically, the increase in the hash rate which has reached a new all-time high and the number of active Bitcoin addresses “is equivalent to a price of around $ 15,000”, as shown below.

The analyst indicates that the adoption of Bitcoin is also evident in the investments that Grayscale and MicroStrategy have made. In addition to demand indicators, McGloone says the reduction in Bitcoin supply will be an important factor in the continued appreciation of BTC. As shown in the graph below, the analyst establishes an indirect proportional relationship between the increase in quantitative easing by the US Federal Reserve and the supply of BTC.

McGloone predicts that Bitcoin will increase its price, but at a slower pace. As he notes, the cryptocurrency went from $ 1,000 to $ 10,000 in 4 years. As a result, he believes that this time around it will take 8 years for the currency to add a new zero to its price. By 2025, the analyst says, Bitcoin will be priced at $ 100,000.

Additionally, McGloone expects a near imminent approval of a Bitcoin ETF, which would be extremely bullish for the price.

Futures were an initial starting key for Bitcoin in the main stream of asset classes. US Exchange Traded Funds (ETFs) should be a matter of time, allowing easier access to money managers as gold ETFs did in 2004. As we see it, something significant has to go wrong to reverse the trend. adoption of Bitcoin and price appreciation.

In line with McGloone’s findings, former Goldman Sachs employee Raoul Pal recently declared that Bitcoin’s one-month volatility is “falling rapidly”. Compared to times when Bitcoin had similarly low volatility, Pal expects a “big move” soon. Although he said it could be a significant rise or fall.

On the other hand, day-trader Credible Crypto remains optimistic as long as Bitcoin maintains its current support level and doesn’t drop below $ 10,400 in the short or medium term. As shown in the chart below, the trader also marked resistance at $ 11,000. The analyte declared:

Nothing has changed since this post over a month ago. I remain macro bullish and still think this is the last big BTD opp we will have up to 14k +. The ideal “path” is below based on the idea that 10.4-10.5k is worth in the short / medium term.