Bitcoin Price Action Mirrors Massive 2013 Surge, Rise to $400,000 Possible: Top Bloomberg Analyst

April 9, 2021 The Daily Hodl

Crypto sentiment falls even as Bloomberg tips Bitcoin will hit $400K

April 8, 2021 Coin Telegraph

Bitcoin

Despite apparent sentiment shifts following this week’s price dip, experts are predicting Bitcoin will potentially reach $400,000 eventually.

Analytics company Santiment reports that cryptocurrency sentiment has fallen to near-record low levels for 2021 — even as some experts are doubling down on $400,000 Bitcoin’s price target.

Sentiment nosedived following Bitcoin’s drop below $60,000 to its current price of $56,300 and Ethereum’s dip under $2,000 this week, according to Santiment. Ether is currently trading at $1,986

The crowd mood toward #Bitcoin and #Ethereum appears to have dropped to extreme negative territory after $BTC fell back under $60k & $ETH dipped back under $2k this week. Historically, buying during this level of #FUD & fear is a #bullish opportunity. https://t.co/u7LKbvoqSt pic.twitter.com/ZTxQFroEfM
— Santiment (@santimentfeed) April 7, 2021

But other analytics platforms show a less convincing shift with crypto predictive data platform Augmento seeing sentiment slide from 'bullish' to 'slightly bearish'. The Alternative Crypto Fear and Greed index meanwhile shows almost no change, with the counter still clearly sitting at “greed”

Alternative Fear & Greed Index. Source Alternative

Yesterday’s sell-off, which saw the entire cryptocurrency market cap drop briefly below $1.8 trillion before stabilizing around $1.9 trillion, doesn’t appear to bother seasoned analysts. Quantum Economics founder Mati Greenspan stated in his April 8 newsletter that the dip “took place on relatively low volumes.”

Bitcoin price, real volume, and difficulty. Source: Messari

He noted that Bitcoin miners seem to have not even noticed the dip with the network’s hash rate reaching a new all-time high of 179 million exahashes, adding “that miners are hoarding Bitcoin right now instead of selling it back to the market.” This is often taken as a sign they expect higher prices.

History suggests BTC only getting started

Released on April 5, a report by Bloomberg Intelligence Strategist Mike McGlone predicted Bitcoin could soon approach $400,000 based on past Bitcoin bull runs, adding:

“In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month's average price, Bitcoin increased a little over 50x to the peak in 2017”

Although it doesn’t give a specific time-frame for when this peak might be achieved, the report does specify that over the next quarter the price is likely to “breach $60,000 resistance and head toward $80,000.”

Bitcoin analytics account “Ecoinometrics” tweeted that historically, the BTC price broke out between 300 to 350 days from previous halvings. We are currently at 329 days from the latest halving. If it plays out anything like previous halvings next May could see a Bitcoin price past $700,000... or drop to well below $40,000.

Bitcoin price prediction. Source: Twitter

Bitcoin to Become the Global Reserve Asset, Says Bloomberg

April 7, 2021 The Crypto Briefing

Bitcoin

A new report suggests that Bitcoin’s fundamental and technical values are improving despite its recent lackluster price action.

Bitcoin’s Mainstream Adoption Accelerates

Bloomberg released a new edition of its monthly cryptocurrency outlook report, titled “Rising Bitcoin Adoption Tide.” The financial media giant evaluates the different factors contributing to the increasing demand for BTC and provides a forecast to see where the leading cryptocurrency is heading next.

Notably, the study is overwhelmingly bullish, citing a paradigm shift favoring the pioneer cryptocurrency in replacing gold as the “global digital-reserve asset.”

According to Bloomberg, Bitcoin has built a price floor at $50,000 while the overhead resistance around $60,000 has been weakening over time. The firm expects prices to slice through this hurdle and advance higher over the next few months after the ongoing consolidation period.

But in the event of a sell-off, the 20-week moving average at $40,000 is seen as the most “extreme downside risk.”

“A more likely 2Q scenario is to breach $60,000 resistance and head toward $80,000. A backup toward $40,000 support is less likely, in our view,” said Bloomberg.

One of the key factors cited in the report that supports the bullish narrative was Tesla’s bold move to allocate some of its wealth into Bitcoin.

Bloomberg refers to such development as an “inflection point” that may encourage other firms to diversify into the digital asset. Now, there is a higher probability that BTC migrates into traditional investment portfolios because of “the risks of missing out on the potential for Bitcoin becoming the global benchmark digital asset.”

In essence, BTC’s fundamental and technical underpinnings are improving, making a solid case for it to replace gold as a store of value in investor portfolios. Such market conditions suggest that the flagship cryptocurrency would reach “price extremes” akin to those in the 2013 and 2017 bull runs.

Under such circumstances, Bloomberg believes that Bitcoin would rise to $400,000.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.

JP Morgan Says Stable Bitcoin May Attract Institutions: Report

April 2, 2021 The Crypto Briefing

A more stable Bitcoin may bring more institutional investors, says JP Morgan.

JP Morgan Forecasts Institutional Catalyst

Bitcoin’s falling volatility could attract institutional investors, according to a team of JP Morgan analysts.

Bloomberg published details of a Thursday report in which JP Morgan described Bitcoin’s recent stability as a potential catalyst for corporate buyers. Nikolaos Panigirtzoglou, a strategist at the investment bank, wrote:

“In our opinion, a potential normalization of Bitcoin volatility from here would likely help to reinvigorate the institutional interest going forward.”

The report noted that Bitcoin’s three-month realized volatility had fallen from levels above 90% in February to 86%, while the six-month measure was 73%.

According to JP Morgan, the asset’s volatility has increased the perceived risk of investing and dissuaded institutions. They also noted that renewed interest in Bitcoin had affected the gold market. The report pointed out that there have been $7 billion of inflows to Bitcoin funds and $20 billion of outflows from exchange-traded funds tracking gold.

The idea of institutional investors buying into the original crypto has been discussed in the crypto community for years. Signs of mainstream adoption have been clearer than any other period in Bitcoin’s history in recent months, with companies like MicroStrategy and Tesla adding the asset to their balance sheets. This week, Morgan Stanley and Goldman Sachs have announced plans to offer their clients Bitcoin exposure. JP Morgan has recently endorsed the asset, too, suggesting that a 1% portfolio allocation in Bitcoin could be an effective hedge.

The heightened attention surrounding Bitcoin comes as the asset’s price rally pushes the cryptocurrency market close to a $2 trillion market cap. Bitcoin’s run started in earnest when it broke $20,000 on Dec. 16, overtaking JP Morgan in market cap. It’s up almost 200% since then, currently trading at $59,212.

Bitcoin can reach $400K in 2021 as ‘risk-off reserve asset’ — Bloomberg

March 26, 2021 Coin Telegraph

Bitcoin

With institutions demanding protection from inflation and dollar depreciation, historical trends could see BTC/USD 8X from current prices, says Bloomberg Intelligence.

Bitcoin (BTC) still gets criticized for being too volatile, but one Bloomberg analyst believes that it conversely is becoming a "risk-off" choice for investors.

In a tweet on March 25, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that this year marked a watershed moment for the largest cryptocurrency.

$400,000 BTC would "rhyme" with history

McGlone uploaded a chart of the BTC/USD average price and the Bitcoin Liquid Index, a price ticker specially created for institutional use.

"Well on its way to becoming a global digital reserve asset, a maturation leap in 2021 may be transitioning Bitcoin toward a risk-off asset, in our view," he wrote.

A potential price peak this year, with previous behavior as context, could be as much as $400,000 per coin, the chart shows. This dwarfs other estimates, such as that of stock-to-flow, which calls for an average of $288,000 between now and 2024.

*BTC/USD price indices chart. Source: Mike McGlone/ Twitter/ Bloomberg Intelligence*

While McGlone did not provide exact details of the factors behind Bloomberg's view, the idea of Bitcoin reducing, rather than increasing portfolio risk is the talking point of the year among corporates. New reports of treasury allocations to BTC appear frequently, with appetite unfazed by price action.

"My mission right now is to fix the balance sheets of the world," Michael Saylor, CEO of MicroStrategy, one of the largest Bitcoin treasury investors, said in an interview with TIME this week.

Saylor kickstarted a trend among public companies last summer, which has seen over $52 billion converted to BTC on a cost basis, now worth over $73 billion, according to monitoring resource Bitcoin Treasuries.

What risk?

Ahead of Morgan Stanley becoming the first major bank to open up access to Bitcoin funds for high net worth investors next week, however, naysayers continue to peddle familiar arguments against exposure.

"Morgan Stanley limiting crypto access to 2.5% of high net worth individual accounts, that have over $2 million in assets and have been active for over six months, shows that the bank realizes Bitcoin is very risky and wants to limit legal liability from investors who lose money," gold bug Peter Schiff recently claimed.

Meanwhile, Fed Chair Jerome Powell likened Bitcoin to a "substitute" for gold, to Schiff's displeasure, but added that it did not pose a risk to the dollar or to financial stability.

As Cointelegraph reported, average returns for BTC/USD have topped 200% every year since the cryptocurrency's inception.

Bloomberg

History suggests BTC only getting started

Bitcoin’s Mainstream Adoption Accelerates

JP Morgan Forecasts Institutional Catalyst

$400,000 BTC would "rhyme" with history

What risk?

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