The $20,000 was surpassed in mid-December and the $30,000 in early January. Yesterday, January 7, 2021, the $40,000 mark was also momentarily exceeded for the first time in history, making a new all-time high.
The report, compiled by Bloomberg Intelligence and titled „Bitcoin may be better than gold,“ argues that $50,000 may be the „next stop,“ and that Bitcoin Loophole scam may be able to continue to attract even old guard gold investors.
Specifically, it argues that the odds are declining that the price could return to $20,000, while those of further growth towards a price of $50,000 and a market capitalization of around $1 trillion (it is currently $725 billion) are increasing.
The report also states that the regulatory process is maturing this asset much more than the other 8,000 cryptocurrencies, partly because most of these are not truly decentralized projects.
„Bitcoin has crossed the Rubicon entering the mainstream and still appears to be in its early days of price discovery.“
Bloomberg, Bitcoin price like a tsunami
The trillion market capitalization value, corresponding to a BTC price of about $53,000, is called a „key hurdle,“ but the path to this threshold is supported by Bitcoin’s institutional and broad adoption, which has turned it into a kind of tsunami thanks to which it is proceeding briskly toward the next price resistance level, located right at $50,000.
The report also mentions the two years following the two previous halvings, highlighting how the price of bitcoin increased 55 times in 2013 and 17 times in 2017, while a price just above $50,000 would correspond to an increase of less than 2 times from the price at the beginning of the year.
Recall that the first halving occurred in 2012, the second in 2016, and last year the third occurred.
However, the current state of progress, if this were the trend, would be similar to what the price of bitcoin had in May 2017, that is, when the price doubled the level reached during the previous all-time high, so the one underway would be a definitely accelerated pace. This is why they suspect that sooner or later there will be a correction anyway.
Regarding the comparison with gold, the report points out that Bitcoin is more portable, tractable and transparent, and it is spreading in a world that is increasingly switching to digital.
„We view Bitcoin and gold as portfolio companions.“
Regarding the dollar’s inflationary risks, he adds:
„Rapidly growing G4 central bank balance sheets as a percentage of GDP provide favorable macroeconomic foundations for Bitcoin in a world that is increasingly moving toward digital.“