Bloomberg Intelligence has recently released the August 2021 edition for its recent report on Bitcoin. It looks like these guys are very much bullish on Bitcoin’s journey to the north.
The publication notes that the U.S. embracing digital assets with proper regulatory measures vs China’s growing crackdown is creating a favorable bull case scenario for the bitcoin and the USD.
As per Bloomberg, Bitcoin (BTC) is set to turn $40,000 price levels into strong support. However, BTC corrected earlier this week and slipped under $40,000. Despite Bitcoin being 4.22% up today, it continues to trade at $39,474 with a market cap of $741 billion. The Bloomberg report notes:
“This year is prime for Bitcoin to take the next step in its price-discovery stage and we see a refreshed bull market. Speculative excesses have been expunged, Ethereum has earned the status as a worthy companion and most of the pressure factors are longer-term bullish. China crackdowns and U.S. regulation are part of maturation”.
Bitcoin Heading to $100,000
On the downside, Bloomberg analysts wrote that Bitcoin is building a strong base at $30,000. The analysts then compare it to BTC’s $4000 price support in 2019. Thus, drawing performance parallels, the world’s largest cryptocurrency is all set to go further to $100,000 levels.
It also points out some bullish indications like “Supply is declining while demand and adoption are rising in most countries that welcome open discourse and free-market capitalism”. At the same time, the number of users on the Bitcoin network has been on the rise.
The number of new users coming on the Bitcoin network continues to reach new all time highs. pic.twitter.com/yttPlhJBPd
— Will Clemente (@WClementeIII) August 4, 2021
The report mentions that Bitcoin is becoming a digital gold while Ethereum is becoming a go-to platform for digitization of money and finances.
Besides, it also notes that the USD is single-handedly dominating the trades in the crypto market. Almost all of the top stablecoins used in the market have their value pegged to the U.S. Dollar.
Citing that Tether is among the top five cryptocurrencies by market cap, Bloomberg notes that three of the top five traded cryptocurrencies are digital dollars. Putting its view about the second half of 2021, Bloomberg notes that Bitcoin, gold, and long bonds will be the outperformers in this period.