Bloomberg Strategists: Bitcoin will Claim $50,000 in the Short-term
As compared to gold, Bitcoin has a lot of potential to grow, according to Bloomberg strategists. Over the last few years, crypto-inspired people have said that Bitcoin would overturn gold in the long-term.
Bloomberg’s strategists have compared the top digital currency with the gold-based exchange-traded funds (ETFs). As a result of the comparison, the strategists found out Grayscale’s GBTC represents 12% of gold ETFs worth $210 billion. With time, the money is moving from traditional gold bullion into the leading cryptocurrency.
Bitcoin to Replace Gold
Bitcoin faced many bearish blows and went below $30,000 more than one time. But every time, bulls came to rescue it and helped continue the bullish cycle. The strategists at Bloomberg explained that the price tag would reach $50,000 due to institutional inflows. However, they also revealed that gold-tracking ETFs are also gaining fresh funds from investors. But overall, they expressed bearish opinions about the world’s top cryptocurrency.
Due to the high potential of Bitcoin, institutional players are taking it seriously. What’s more, the top digital currency has a lot of room to grow as it is one of the best hedge instruments out there.
Recently, JPMorgan explained that Bitcoin was gradually replacing the gold and elaborating on how institutional forces will drive the price value high.
The money transfers from gold bullion into the top digital currency. However, there still a large gap between both hedge assets in terms of market capitalization.
The strategists explained that flagship cryptocurrency traded between $30k and $40k in the past few weeks. In the short-term, it could target $50,000 because investment inflows are at a high level. According to them, the level of $40,000 could act as a resistance level in the path towards $50k.
Bloomberg’s market specialists also noted that the volatility of Bitcoin is decreasing against gold, which is a signal that the high flying cryptocurrency is getting matured.
In today’s trading session, the coin has not performed well as it is down 6.41% in the past 24-hours. On the weekly timeframe, it is still bullish- up more than 15%. Bitcoin is exchanging hands at $38,128 after a record daily trading volume.
Altcoins, on the other hand, have expressed mixed performance. Ethereum has decreased by 6.42%, but Cardano has increased by 17% over the day.