A new report from Bloomberg Intelligence suggests that Bitcoin price could soon approach $ 100,000 if historical trends continue.
This month’s “Bloomberg Crypto Outlook” reports on a bullish future price for Bitcoin and states: “We are seeing performance parallels that could bring the benchmark crypto back on the path towards 100,000 US dollars”.
The intelligence report said, “What has changed in about three years is enough to sustain more of it for most of Bitcoin’s history – rising prices. Supply is decreasing while demand and acceptance are increasing in most of the countries that embrace open discourse and free market capitalism. “
The report notes that “Bitcoin is becoming digital gold in a world that goes in this direction,” and that “free market capitalism over digital assets is on the rise, and if ongoing trends don’t reverse, so will be.” US dollars and Bitcoin will be the main beneficiaries ”.
The outlook noted what Bitcoin has to offer developing countries like El Salvador and other populations that largely do not have a bank account: “Bitcoin helps fund the bank without a bank account, and the most important emerging country, China, does not allow the free flow of” Capital or discourse. ”
Regarding the disruption of traditional financial markets by Bitcoin, the report said: “When views that counter longer-term trends become consensus, the probabilities often lean back to permanent rates, which is the optimistic outlook for Bitcoin.”
The report also included many graphs showing Bitcoin’s rise versus falling bond yields, gold prices, and altcoins. Commenting: “Gold appears increasingly naked when it is not paired with Bitcoin.”
The report referred to Bitcoin’s “fundamentally bullish fundamentals” and defined its virtues as inflation protection: “[Bitcoin] represents a fast-moving technology that puts pressure on inflation and supports the quantitative easing that drives the stock market. “
The Bloomberg Finance Intelligence Report also picked up bullish signals when Bitcoin was paired with crude oil, noting, “Bitcoin hash rate and crude oil seem to have little in common, but some return from extreme levels has bullish ramifications for crypto . “
Regarding the China exodus, Bloomberg stated that the “Bitcoin hash rate correction has probably been completed. The biggest slump in the Bitcoin hash rate of all time is likely to be over and the price will continue to recover when previous patterns reappear. “
“A falling hash rate reflects the confusion among China’s miners and is, in our view, a temporary decline in discovery and Bitcoin price trends,” the report said.
The “Bloomberg Crypto Outlook” even interfered in the Bitcoin energy debate and stated: “Gas flaring is a problem that Bitcoin mining is helping to solve, in addition to improving renewable energies and regulating power grids”.
The report also made weak links between Bitcoin and the oil market, writing, “The bitcoin bull collapse appears to be over and an end to the crude oil boom may lay the groundwork.”
Bloomberg also commented on Bitcoin’s dominance over centralized alternative securities like Ethereum: “Cryptocurrency # 2 is likely more vulnerable to withdrawal from the stock market than Bitcoin with store of value.”
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.