Bitcoin goes to $ 400,000 this year? New price forecasts have arrived

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16:05 / Thursday, 08 April 2021 / A. SBitcoin goes to $ 400,000 this year? New price forecasts have arrived
Two days ago, the New York Bloomberg agency published its monthly issue "Prospects of cryptocurrency", in which it deals with the growing demand for bitcoin.

According to Bitcoin magazine, the report is markedly bullish (bull market is a period in stock market terminology when prices are mostly rising), especially considering it was signed by a reputable company in the finance and media sphere.

Here are some of the most obvious views from the Bloomberg report:

According to analysts at the New York company, the gradual acceptance of bitcoin affects human nature, which tends to support the growth of cryptocurrencies, so fund managers are reluctant to bypass Rubicon and invest at least part of the funds in it, while the price of bitcoin grows in an environment with unprecedented low asset values.

Over the past year, record low bond yields during the pandemic have played a significant role in bitcoin acceptance, to which more and more investors are paying attention.

Bloomberg also shows the contrast between the recent bitcoin price movement in relation to gold, so he says that in relation to gold, cryptocurrencies have a basis for reducing volatility - the amount of bitcoin is limited. "Mainstream acceptance and higher prices increase depth, which suppresses volatility and risk," writes Bloomberg.

The report consistently emphasizes the superiority of bitcoin as a monetary asset in the digital economy over gold. Although the forecast for gold is not "bearish" (the bear market is synonymous with the stock market falling over time), value and price data lead Bloomberg to conclude that bitcoin is replacing its monetary predecessor as a more volatile currency. desirable non-sovereign reserve in investor portfolios.

"The proverb that 'money goes where it's best' best describes what we see when companies support bitcoin price increases. "It does not necessarily mean a drop in the price of gold, but most indicators show a shift in the global wave of money towards the new digital currency as a reserve asset," said the New York agency, as reported by Bitcoin magazine.

"Bitcoin's attitude towards gold is similar to 2016, when the brightest metal reached close to $ 1,400 an ounce and the cryptocurrency was launched at its maximum in 2017. The main difference this time is that bitcoin is becoming less and less speculative, thanks to acceptance. bigger. "The world's largest manufacturer of electric vehicles from the market capitalization (Tesla), announcing that it will diversify part of the funds in cryptocurrency, enabled Bitcoin to cross the threshold of $ 40,000," Bloomberg wrote in its edition.

It shows that analytical models show that the amount of bitcoin on stock exchanges is declining, despite the bull market, which is the opposite trend regarding the bull market from 2017. The report highlights Bloomberg estimates that bitcoin follows a path similar to that from 2013 and 2017, and the graphs show a potential price of up to $ 400,000.

In any case, logarithmically, the price movement of bitcoin over the years is an incredible challenge for investors in the current economic environment.