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Bitcoin Is More Likely to Resume Moving to $100,000 Than Stay Under $20,000: Bloomberg Report

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Thu, 06/03/2021 - 15:06
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Yuri Molchan
Bloomberg Crypto Outlook says that Bitcoin is unlikely to sustain below $20,000 but should be on track to hit $100,000 again
Bitcoin Is More Likely to Resume Moving to $100,000 Than Stay Under $20,000: Bloomberg Report
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A tweet shared by Bloomberg's chief commodity strategist, Mike McGlone, discusses Bitcoin and Ethereum, touches Tether and states that the flagship cryptocurrency should get back on track toward $100,000.

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Image via Bloomberg

"Bitcoin is likely to resume the rise to hit $100,000"

As Bitcoin is trading in the $38,000 zone, the authors of the Bloomberg report say that BTC could be in a "resting crypto-asset bull market."

The Bloomberg Galaxy Crypto Index (BGCI) shows that a bull market is likely to kick off in June. At the moment, the largest cryptocurrency is creating a basis around the $30,000 level after its 50 percent fall from the $68,700 all-time high in April.

Now, a lot of speculative assets are gone and Bitcoin's fundamentals remain intact, according to the report.

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"Diminishing supply and substantial cash flows"

The document mentions that one of the major reasons for the potential continuation of Bitcoin's rise is its diminishing supply and large amounts of both retail and institutional money that have been flowing into Bitcoin this year.

A full adoption is still far away, but Tesla's move to choose Bitcoin as a means of exchange shows that BTC has won the race here, even though BTC payments were suspended later on.

Since the major reason for the Bitcoin correction cited by the community and experts is the carbon emissions issue, Bloomberg experts believe that China's restrictions on Bitcoin mining based on fossil fuels will force miners to go greener and cleaner - even if they have to leave China to do that.

The report also mentions the 2020 Bitcoin halving, which took place amid the unprecedented monetary stimulus programs rolled out around the world. These factors have also made Bitcoin too strong to go under $20,000.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.