- According to a new Bloomberg Intelligence (BI) report, Bitcoin is on the verge of resuming its bull-run with its resurgence tipped to be massive.
- In another report, Bitcoin is said to benefit from the central bank’s asset purchase program which may cause inflationary pressure.
The recent Bitcoin bull-run sent its price to a new all-time high of $65,000 before the mass sell-off that sent the price as low as $29,000. Though Bitcoin is struggling to recover from the plunge that saw it clean out half of its value, experts predict that this bear market will not last. According to a new Bloomberg Intelligence (BI) report, Bitcoin is on the verge of resuming its bull-run with its resurgence expected to be massive.
A huge investment is expected to flow into crypto as crude oil has been predicted to start a bear trend which may come with severe economic implications.
Bloomberg Intelligence estimated that currently, 470 barrels of crude equal one Bitcoin, which is said to be similar to the 2016 exchange position when the crude to Bitcoin ratio was at a three year low before the subsequent bull-run of Bitcoin in late 2017 and early 2018.
BI has predicted that if the new low in relative Bitcoin volatility is to go by, Bitcoin could follow a similar trend into 2022. According to Mike McGlone, commodity strategist at Bloomberg Intelligence, pre-existing trend strongly favors Bitcoin than crude in the second half of 2021.
If West Texas Intermediate crude oil reverts from seven-year highs at the start of July, the pre-existing downtrend in bond yields is more likely to accelerate, with bullish implications for store-of-value assets gold and Bitcoin. Pre-existing’ needs to be clarified, as probabilities appear tilted toward crude oil resuming its downward trajectory since peaking in 2008.
Central bank’s asset purchase program could be another factor
Analysts believe that when there is a stretch in price against a more fundamental trend, reversion could be triggered by a slight catalyst. Bitcoin has shown an edge against crude oil as it is enjoying an increasing adoption in an ever falling supply. Bitcoin has also been said to be advancing over crude due to the rising digitalization and decarbonization.
In another report, Bitcoin is said to benefit from the central bank’s asset purchase program which may cause inflationary pressure and force people to resort to safe-haven assets. According to John Miller, a financial analyst, Fed’s accommodative balance sheet policy will backstop asset prices and support elevated liquidity. In this environment, only cryptos with a strong store of value dynamics like Bitcoin will thrive.
Product owner at Digitex, Alexey Veledinskii also asserts that with the rising inflation concern, Bitcoin should hold $30,000 and rebound.
Major support at $30,000 can easily be flipped with a rebound to more ambitious price points toward $50,000 to $70,000 in the mid to longer-term
Der Beitrag Bitcoin to resume bull-run in the second half of the year – Bloomberg Intelligence report erschien zuerst auf Crypto News Flash.
