Over time, Bitcoin’s maturation is accelerating and the number 1 cryptocurrency would prepare, due to the current economic environment, for a new bull run similar to 2017.
So it’s a rather bullish report that Bloomberg published on the growth prospects to consider for Bitcoin BTC.
The report points out from the start that Bitcoin was born out of the 2008 financial crisis and that the similar situation of financial crash in the markets could thus lead Bitcoin to adoption by the public.
In a consolidation phase, Bitcoin is said to be confirming its status as a digital gold.
BTC volatility which should decrease over time, sheltered from negative market shocks.
“This year will confirm Bitcoin’s transition from a risky speculative asset to a gold version of the crypto market. Bitcoin and gold are also expected to be the main beneficiaries of the unprecedented monetary stimulus which is accompanied by a return to the stock market.
More and more addresses are pointing to Bitcoin’s transition to a digital version of gold.”
The Coronavirus/Covid-19 crisis and its economic consequences also make it possible to consolidate the place of Bitcoin compared to other cryptocurrencies according to the Bloomberg report.
“The Covid-19 distinguishes Bitcoin from the rest of the cryptos. The macroeconomic effects of the coronavirus accelerate the Bitcoin process to gain value compared to other cryptos.
Most of the speculative push in the Bloomberg Galaxy Crypto Index (BGCI) to start 2020 has dissipated, and on a one-year basis, Bitcoin rose almost 40% as of April 2 against a drop in about 13% of the BGCI…”
Another important point highlighted by Bloomberg, the introduction of Bitcoin futures has helped stabilize the BTC bull market.
“The advent of listed futures has helped tame the Bitcoin bull market, and we believe it is part of the gold-like transition process in the crypto market. Increasing open term interest and volume represents adoption – the key to emerging digital assets with a limited supply.”
Regarding a new Bitcoin bull run as in 2017.
The Bloomberg report looks back at the low volatility of the cryptocurrency at the end of 2015 which was considered to be the start of the bull market and which gave rise to the 2017 bull rally.
So, according to current data, Bitcoin could approach an inflection point similar to its 2017 leap.
Last element in favor of Bitcoin and cryptocurrencies, the arrival of central banks in the crypto market with the launch of national digital currencies.
China is about to launch its Yuan Digital.
Another positive element for the adoption of Bitcoin and cryptocurrencies is the launch of Libra by Facebook.
Bitcoin halving in a few weeks also casts doubt on the direction of the Bitcoin price which is currently around $7,126.
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