Bloomberg: Bitcoin price could reach 400,000 USD in 2021

As the price of bitcoin rises to more than $ 60,000 over the weekend, a Bloomberg analyst predicts the cryptocurrency could rise to $ 400,000 in 2021.

Bitcoin has skyrocketed from around October 2020 until now, climbing to around $ 60,000 and helping the crypto market record record growth with a capitalization of up to $ 2 trillion.

In fact, the price of bitcoin has increased by about 400% between 2020 and the first 3 months of 2021. The interest and market participation of billionaire Tesla billionaire Elon Musk and other corporate investors has made the crypto market “crazy”.

Will Bitcoin price outlook to 400,000 USD come true?

Currently, as many bitcoin and crypto analysts are confident in bitcoin’s place in the market, A Bloomberg analyst has predicted bitcoin price could reach $ 400,000 this year – even Tesla boss Elon Musk is looking more interested in his bitcoin-dogecoin rival.

Bitcoin price

Mike McGlone, senior commodity strategist at Bloomberg Intelligence wrote in his early April market report: “The technical outlook for bitcoin in 2021 remains strong, if past patterns repeat.”

His argument is based on the “same basis as the roughly 55x increase in 2013 and 15x in 2017” of bitcoin (two times in the past where bitcoin achieved its strongest growth).

“To reach the same price level as those years in 2021, the digital currency bitcoin will have to reach $ 400,000, based on regression since its 2011 highs. In September 2020, the cryptocurrency’s 180-day volatility matched its all-time low since October 2015. From the average price of that month, bitcoin has risen more than 50 times from its peak in 2017”, McGlone said.

Specifically, the price of bitcoin doubled in the first three months of 2021, up from just under $ 30,000 to $ 60,000. Bitcoin’s price boom has turned it into a $ 1 trillion asset and has pushed it closer to appearing in mainstream transactions.

According to McGlone, 2021 may “coincide” with 2017 and 2013 because all are similar developments, especially when bitcoin enters a halving period. “The year after the supply cuts (halving) is 2021, which has in common with 2017 and 2013 despite slight fluctuations in price. The initial support for the 2021 median price range is 44,000 USD to March 25 “.

Meanwhile, Tesla’s recent $ 1.5 billion bitcoin purchase could be a “inflection point” for bitcoin, triggering a shift to “risk.” “Increasing partial equity diversification into bitcoin is plausible, in our view,” McGlone writes.

This is supported by a survey taking place this week that found institutional investors, businesses, and asset managers expecting to see more companies adding bitcoin to their reserves. surname. A survey by the digital asset manager Nickel Digital Asset Management found, 81% of investors and managers questioned expect that over the next two years, more and more businesses around the world are interested in investing in bitcoin.

Nickel Digital Asset Management’s CEO, Mr. Anatoly Crachilov, evaluated: “A growing number of corporations, including car maker Tesla, intelligence business firm MicroStrategy and mobile payment processing platform Square have been spending billions of dollars on bitcoin as part of their bank reserve strategy funds. This, along with the structural allocation for crypto assets, is announced by top global asset managers such as Paul Tudor Jones, Bill Miller, Ruffer, and Guggenheim Partners also continues to be a huge endorsement of bitcoin’s function as a store of value”.

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