The Bloomberg Intelligence report analyzed the Bitcoin market and its growing position as a digital store of value. The report looked at various aspects of the top cryptocurrency, including declining volatility, increased adoption, and the increased inflow of funds from a traditional store of value assets such as gold, stocks, and bonds.
“In our view, Bitcoin is moving from a speculative risk asset to a global digital store of value in 2021. In this price discovery phase for emerging Bitcoin, we see a cautious variety that sustains a rising tide. ”
In this bull run, Bitcoin not only nearly tripled its price from 2017’s highest level, but more importantly, it gained widespread acceptance from institutions that used it as a treasury reserve asset in the midst of its decline in value.
“Bitcoin can exceed 100 thousand dollars”
In 2021, Bitcoin succeeded in exceeding the previous threshold of $ 50,000 and its market value of $ 1 trillion in just two months of this year. With increasing demand and an increasingly favorable macroeconomic environment in the face of declining supply, the report notes that Bitcoin has matured as an asset class and could reach the $ 100,000 price threshold by the end of 2021.
The report also notes that Bitcoin’s relative volatility is on the decline versus gold, and if the nascent digital asset continues to behave similarly, its volatility will be less than that of Amazon and other stocks in a few years.
The report also notes that current price volatility and sales come largely from retail investors and are quite similar to the early 2017 sales pattern, but in the long run hodlers will outstrip these weak sellers.