Bloomberg: A key indicator suggests Bitcoin price will break $12,000

Bloomberg is optimistic that Bitcoin price will surpass $12,000 in the near term, driven by on-chain and off-chain indicators.

By MICHAEL KAPILKOV

Translated by: Zion Editor: Rose

Bloomberg’s mid-year report states that the price of Bitcoin (BTC) could soon surpass $12,000.

Active addresses continue to increase

The report argues that both on-chain and off-chain indicators of Bitcoin indicate that Bitcoin will appreciate. One of Bloomberg’s key indicators is the number of active addresses. Bloomberg elaborated:

According to Bloomberg pricing, Bitcoin closed at a high of $12,734 in 2019. Unless the current address count suddenly reverses, history suggests that Bitcoin may trend towards this price level.

Grayscale's dynamics are positive

Bloomberg believes that the continued growth of Grayscale’s Bitcoin Trust (GBTC) and the narrowing of its premium relative to the Bitcoin spot market should also be interpreted as positive for the market:

On a 30-day average basis, the Bitcoin Trust is trading at a 20% premium to its underlying net asset value, compared to a historical average of 39%.

We should note, however, that GBTC’s growth has stagnated recently.

The report notes that the Office of the Comptroller of the Currency’s recent decision to allow U.S. banks to provide custody for digital assets should clear the final hurdle for institutional investors. Nonetheless, the report notes that Bitcoin’s breakout above $10,000 (which the report was likely compiled last week) is crucial to sustaining the momentum.

While Bloomberg remains bullish on Bitcoin, its level of optimism appears to be declining. In late June, Bloomberg suggested that Bitcoin was facing resistance at $13,000, having predicted a surge above $20,000 in early June.