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Bloomberg: Bitcoin Price Expected to Rise 100x an Ounce of Gold

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A Bloomberg Intelligence report has analyzed the bitcoin market and its growing stature as the digital store of value. The report looked into various aspects of the top cryptocurrency, including its declining volatility, rising adoption, and growing inflow of funds from a traditional store of value assets such as gold, stocks, and bonds.

Bitcoin in 2021 is transitioning from a speculative risk asset to a global digital store-of-value, in a world going that way, in our view.

We see prudent diversification sustaining a rising tide in this price-discovery stage for nascent Bitcoin.

Bitcoin in this bull run has not just seen its price nearly triple from 2017 high but more importantly seen a massive adoption from institutions that are using it as a treasury reserve asset amid declining US Dollar value.

$100,000 Could Be Bitcoin’s Next Threshold

Bitcoin in 2021 has managed to surpass its earlier threshold of $50,000 price target and $1 trillion market cap that too only within two months of this year. With the rising demand vs. declining supply and an increasingly favorable macroeconomic environment, the report cites Bitcoin has matured as an asset class and could reach the $100,000 price threshold by the end of 2021.

It’s unlikely there will ever be a Bitcoin equivalent that’s no one’s liability or project.

The report also cites that Bitcoin’s relative volatility is on a decline against gold and if the nascent digital asset continues to behave similarly, its volatility would be less than that of Amazon and other stocks in a couple of years. Bitcoin is gaining momentum entering the 60/40 mix partly due to when paired with gold the top cryptocurrency outperforms and has less risk than the S&P 500.

The report also cites that the current price volatility and selling come from majorly from retail traders and quite similar to the early 2017 selling pattern, however in the long run hodlers would outnumber these weak sellers.

Potential For Bitcoin Price to Stabilize Around 100x an Ounce of Gold

The current selling patterns and outflow of funds from stocks and the Gold market and if the trend continues the price of one Bitcoin is expected to rise 100X the price of an ounce of gold.

A potential path for the Bitcoin price is to stabilize around 100x an ounce of gold and for volatility to resume its downward trajectory.

The report analysis suggests that bitcoin price would continue to rise by 55X to 15X as supply diminishes after every block reward halving.

The post Bloomberg: Bitcoin Price Expected to Rise 100x an Ounce of Gold appeared first on Coingape.

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Source: https://coingape.com/bloomberg-bitcoin-price-expected-rise-100x-ounce-gold/

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