Analysts at the market data firm also said global indicators were showing a “shifting global tide” in favor of Bitcoin over gold as a reserve asset.
Bitcoin’s price could reach US $ 400,000 this year based on its previous bull runs, according to new data from crypto analysts at Bloomberg.
In the April edition of his Crypto Outlook 2021, analysts said the original digital currency was “on similar ground” as its gains in 2013, which saw its value increase 55 times, and in 2017 when it inflated 17 times in value.
“To reach extreme prices similar to those years in 2021, the cryptocurrency would approach $ 400,000, based on the regression from the peak of 2011,” the report said.
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Meanwhile, Bloomberg pointed out that global indicators show a “shifting global tide” in favor of Bitcoin over gold as a reserve asset, while the decision of large companies such as () to invest in crypto could also increase its value and reputation as a “potential global digital store of value”.
The report also noted a “rising tide” of investment in crypto assets by institutions and individuals, with listed crypto fund assets soaring to nearly $ 60 billion as of March 25, from less than $ 10 billion. of dollars in October of last year.
“Even with speculative excess in the larger crypto market, we believe Bitcoin is less prone to a sustained rise. Another bullish foundation is the impending launch of US Bitcoin-oriented exchange-traded funds, ”the report says.
But could all of this be a Chinese trap?
While Bloomberg analysts are extremely bullish on Bitcoin, investors elsewhere in the industry are less positive about the industry, with some even warning that cryptocurrency could be a financial weapon used by the Chinese government.
Billionaire investor Peter Thiel, co-founder of Holdings Inc () and Palantir Technologies Inc (NYSE: PLTR), said on Wednesday that Bitcoin could be a “Chinese financial weapon” that could pose a threat to the status of the US dollar as a global reserve currency.
Thiel’s comments to the Richard Nixon Foundation follow similar comments from Canadian businessman Kevin O’Leary, who said last month that potential exposure to China via Bitcoin could pose problems for those who are considering investing in cryptocurrency.
Chinese Bitcoin miners account for around 80% of the global cryptocurrency trade, leaving the sector extremely exposed to any change in governance within the authoritarian state.
Bitcoin was trading 0.03% higher at US $ 56,757 at lunchtime on Thursday.