Bloomberg Crypto Prospects: Will Bitcoin Become a Gold 'Duplicate'?

Income from gold, silver, and commodities goes to bitcoin. Bloomberg Intelligence recently released its Bloomberg Crypto Outlook report for March 2021. The following is a summary of the report's main points.

Bitcoin vs Gold, Stocks: No Choice

Bloomberg Intelligence - We believe Bitcoin will transition from a risky asset to a global digital market by 2021. Bitcoin is the world's leading cryptocurrency and has led to the global blockchain revolution and the digitalization of currencies.The US dollar's dominance as the world's reserve currency was reinforced by stability coins, many of which supplemented the dollar and replaced the "old" asset, gold. We also believe that Bitcoin is going through a price finding process and its cautious differences will drive it higher.

The point is, money flows through gold, contracts, and commodities for Bitcoin.Tesla, the world's largest automaker by market cap, has allocated some of its money to Bitcoin, which is a good example.

Bitcoin prices are between $40,000 and $60,000.

Bitcoin value will be more in the $ 40,000- $ 60,000 range and complete the 60/40 mix.In February, the price of Bitcoin hit $60,000, but we see that Bitcoin can see buyers worth up to $40,000. An increase in demand and a decline in commodities could lead to an appreciation of Bitcoin in 2021, which should “add zero” after $10,000.

Price comparison between Tesla Stock and Bitcoin - will 2021 be a potential?

$100,000 could be the added value for Bitcoin.As Bitcoin grows in its price-seeking process, it has seen gains in demand growth, a collapse and an improvement in the business environment, and short-term analysis shows Bitcoin will rule itself by itself- same. After hitting its starting point of $ 50,000 and retailing $ 1,000 billion in 2021, Bitcoin is expected to level off short, with $ 40,000 supporting a reversal. According to the chart analysis, Bitcoin is another major improvement over its existing 60/40 wallet. In February, Tesla, the world's largest automaker by market capitalization, handed out some of its assets to start up digitally-prepared devices.

Bitcoin is up 60% as of March 2, 2021, while Tesla's stock is huge in 2021.At the end of the year, the gaps between the two seemed to widen further.

Bitcoin reserve assets vs mass speculation.Bitcoin was the first cryptocurrency to be born, and this special device set it apart from over 8,000 other cryptocurrencies while propelling it as a global stock market asset. As the Bloomberg Galaxy Crypto Index (BGCI) trend chart shows, Bitcoin has achieved market share and many Bitcoin supporters may push the indicator further.

Bitcoin is still a big log of the market called the trade.

Regulation of crypto assets, especially the stablecoin USD, may be stricter in anticipation.The United States Securities and Exchange Commission (SEC) reportedly took action against Ripple Labs, known as the XRP token, in December to point out the risks certain sectors of crypto faced, but which have affected development. of Bitcoin.

Réserves Bitcoin, Ethereum and Fintech

Most Bitcoin, DeFi, etc. are speculative, and analysis of one-year data shows that Bitcoin can last a long time.On the other hand, as with the advent of the Internet, Ethereum is the ultimate exchange for Fintech, Non-Fungible Token (NFT), Decentralized Exchange (DEX), and DeFi (DeFi). By market cap, Ethereum does not appear to be becoming an out of the box digital trading product. Bitcoin is advancing as the "ultimate" digital asset and alternative investment in commodities and contracts.

In addition, investments in gold in the past have also increased up to Bitcoin.However, the number of good cryptocurrencies is still low. There are around 8,500 tradable crypto assets on Coinmarketcap, up from nearly 5,000 a year ago. This shows that the cryptocurrency market is still very predictable.

The digital currency of the cryptocurrency wave is in high demand.Tether's market cap growth shows that the market needs a digital version of the dollar and that crypto assets are in an uptrend. The last major inflection point in the Bitcoin and crypto market took place in April 2019, the New York Attorney General has said. From highs and lows, Stabilitycoin regained prominence and maintained a 1:1 peg to the US Dollar, while Tether's market value and trading volume began to decline. It shows up. Since then, we have been bullish on Bitcoin.

Tether secures bitcoin as a digital currency.

The market for investment capital and volume of Tether, the world's largest stablecoin, has increased tenfold.The US administration has supported the adoption of digital advantages, especially cash, and no one will be blamed if Tether comes under closer scrutiny and no depressing support carries Bitcoin's value.

Cutting-edge technology boosts Bitcoin over competing productsCommodity traders have benefited tremendously over the past 30 years, and we believe major commodities are now starting to like Bitcoin due to the speed of electronics, decarbonization, and digitization. This "digital gold" does away with traditional gold-plated metals as mining increases demand for fossil fuels.

Digital vs. Future rolling

While some heads for tech companies and futures remain unchanged, tech companies should continue to push the S&P 500 higher.Unlike commodities, Bitcoin can be a huge beneficiary when the stock market is down.

The rising wave of Bitcoin and GBTC

The Grayscale Bitcoin Trust is selling for a discount, with Bitcoin potential of up to $ 100,000 in March.Historical data shows that Greyscale Bitcoin Trust received a high discount in February, which also provided a reasonable price for the Bitcoin market. On the other hand, in December 2020, CME Bitcoin futures traded up 20%.

The Grayscale Bitcoin Trust closed in February with a 2.7% discount, according to Bloomberg Intelligence analysis.The most recent incident happened in March 2017. At the time, Bitcoin was around $1,000, but by December 2017 it had risen to nearly $20,000. Currently, Bitcoin held by Grayscale Bitcoin Trust Fund represents 4% of the total market value of Bitcoin, but this share is only 1% in 2017. Thus, profits are discounted. total Bitcoin market value. The big shop.

Greyscale Bitcoin Trust Panic Sell et Bitcoin ci-dessous

A fall in bitcoin trust prices in grayscale is usually marked by the low in Bitcoin.Following the release of the Canadian Bitcoin ETF, the United States is likely to open a Bitcoin ETF, in addition to encouraging confidence, but Bloomberg Intelligence sees this as an event that could impact inflation.

Arbitrageur's Delight - Bitcoin GBTC et Futures.At the end of February, the price difference between Greyscale Bitcoin Trust and the December 2020 CME futures contracts is around 20%, which we believe is good for Bitcoin. The figure below shows the biggest future discount in the history of the Greyscale Bitcoin Trust and the starting price on the Bitcoin side. Buying GBTC with these discounts shows that the actual price of Bitcoin is expected to be close to $ 43,000 compared to the December 2020 CME futures settlement price of $ 53,250. While both prices and declines make a 20% difference, it is clearly possible for Bitcoin investors to go a long way in protecting certain futures and closing their benefits.

Grayscale Bitcoin Trust luv nqi vs Futures Premium

Steady growth and expanding market depth will close the price gap, and we believe the February 2021 peak indicates Bitcoin is still on the rise.

bitcoin exchange for gold

Bitcoin exchanges for gold. Maybe it was just the weather.Traders traded gold with Bitcoin on their records. Bitcoin's volatility continues to decline in 2020, while most other assets increase volatility. Bitcoin has been "allowed" and as we move forward into 2021, nothing can stop Bitcoin from changing gold "the old fashioned way".

Will there be more risks for those who do not distribute Bitcoin assets?

Bitcoin and gold are not very dangerous in the long run.With gold and silver flowing into Bitcoin, there is not enough reason to reverse this shift. Bitcoin has become an international asset with a gold/gold ratio of over 10x and on the way to 100x.

Despite the price, we think the rise in bitcoin adoption is a positive thing, especially in the all-time high of gold distributors where gold seems to be recurring in a rapidly digitizing world with high growth risk. .

Advantages of gold and bitcoin: Low relative volatility.Bitcoin still beats gold and is less risky than the S&P 500. According to Bloomberg Intelligence analysis, the 260-day volatility of the Gold-Bitcoin 75/25 index has bottomed out and is still lower 20% at risk for the S&P. 500, is similar to what it was at the start of 2016. From the start of 2008 to the end of 2011, the gold-Bitcoin 75/25 index rose 7 times, while the S&P 500 rose only 1 time .

Gold-Bitcoin is less volatile than the S&P 500.

The 260-day relationship between Bitcoin and most markets is negative, but in early March it hit its all-time high of 0.34.The value of the Gold-Bitcoin index should find further support as the Fed begins to invest more to support GDP.

Bitcoin volatility poob

Bloomberg Intelligence believes the exchange will fall if Bitcoin stays below the fresh start with more transactions (likely closer to $ 100,000).

Amazon.com and Bitcoin - Internet Brotherhood.Bloomberg Intelligence estimates that Bitcoin's annual exchange will outperform Amazon.com over the next several years if market metrics hold. The analysis shows that Bitcoin's 260-day risk metric is around 60%, while the same metric measures the world's leading online devices at 40%. Bitcoin's volatility regression line is expected to outperform Amazon.com by 2022 In the early years of Amazon.com's public market, volatility averages over 100%.

Bitcoin volatility will be better than Amazon stocks

Unlike most assets and markets where products and needs are unclear, Bitcoin mining times are fixed.Bitcoin is a technology based on online exchange, nothing is preventing it from becoming a valuable global digital retailer, its market share continues to grow, and it will overtake Amazon as well.