Why Bloomberg Analysts Expect Bitcoin Price to Surpass $10,000

Bitcoin didn’t have the best of times in the second half of 2019, plummeting from this year’s high of $14,000 in June to $7,400 as of this writing. At its low, Bitcoin also fell to as low as $6,500, frustratingly as BTC buyers failed to step in with selling pressure amid Asian digital asset regulation and the alleged multi-billion dollar Bitcoin scammer.
Despite this distressing backdrop, Mike McGlone of the Bloomberg Intelligence unit of the business media giant believes that Bitcoin’s prospects remain positive “in 2020 and into the next decade” due to a number of factors.
McGlone even said that this convergence could bring the cryptocurrency back into the five-figure range in the near future, which would come as a welcome surprise to many investors in the industry who have begun to believe that Bitcoin has re-entered bull market range.
Bitcoin to hit $10,000?
Bloomberg’s McGlone believes that as long as the key support of $6,500 is held in the near future, the bull run for Bitcoin will quickly establish. In fact, the analyst even said that it is only “a matter of time” for BTC to break through the key resistance of $10,000, and the Bloomberg analyst gave a series of reasons:
First, he draws attention to the fact that as gold prices rise, Bitcoin should also rise. Although precious metals prices are currently trending lower, having peaked last summer amid trade frictions, the macro situation could begin to tilt in favor of gold (and Bitcoin) in 2020. A potential recession, instability in Asian financial markets and the resumption of trade frictions, as well as other potential problems in the traditional system, could boost alternative assets.
Secondly, McGlone believes that a perfect storm is being created for cryptocurrencies in terms of their “fundamental premise”, with mass adoption and a fixed supply cap. “Bitcoin is winning the adoption race among crypto assets and is becoming increasingly scarce, which is good for price appreciation. There could be issues with a large number of nascent assets, but unless the fundamental premise reverses, appreciation is more likely to be sustained than depreciation.” This is a market based on simple supply and demand economics, after all.
Other analysts also believe that the bull market is alive and well
McGlone isn’t the only one who sees a positive trend for Bitcoin in the coming year.
Fundstrat Global Advisors’ Thomas Lee recently joined CNBC’s “Market Alerts” segment to discuss the latest developments in the stock and cryptocurrency markets. The host took some time to ask about Bitcoin, specifically regarding whether the analyst believes the bearish bias that has been forming since June will continue into 2020.
Lee disagreed, expressing hope that 2020 will be good for Bitcoin, and he specifically drew attention to three positive factors that could drive BTC into next year:
Strong growth in U.S. stocks, namely the S&P 500, means that investors will soon start allocating more capital to risky investments like Bitcoin and cryptocurrencies; Lee noted that his company has observed a correlation between the strong performance of Bitcoin prices and the S&P 500.
Bitcoin’s block reward reduction, also known as the “halving,” refers to the fact that Bitcoin’s inflation is cut in half during these events over a six-month period. Lee believes this could be a positive for BTC investors because the event creates a huge supply shock in the market, which analysts say will increase demand over time.
Finally, the Fundstrat executive believes that despite the Asian market’s harsh stance on Bitcoin so far, Asia still supports digital assetization because they are pro-blockchain. (Blockchain Knight)