To the credit of Mike McGlone, a senior commodity analyst at Bloomberg Intelligence, he called a Bitcoin breakout towards $13,000 when few expected it.
The nine-page report, entitled "Bloomberg Crypto Outlook: Bitcoin Becoming Prudent," outlined three key reasons why the demand for BTC is set to increase moving forward.
Bitcoin on its own is up 65 percent in 2020 according to CryptoSlate data.
Reason #1: Active Bitcoin address count continues to increase, suggesting a bull phase.
Due to the increasing adoption of Bitcoin as a financial asset and as a means of payment, the number of active BTC addresses has begun to tick higher.
According to McGlone and Bloomberg's attempt to relate to the price of the leading cryptocurrency to its active addresses, Bitcoin is currently 16.5 percent undervalued at $11,700.
"Our graphic depicts Bitcoin following rallying gold and a leading on-chain measure of adoption - active addresses. The 30- day average of addresses from Coinmetrics on Aug. 4 translated to a Bitcoin price above $14,000, vs. about $11,000 on an auto-scale basis since 2017.".
"The Grayscale Bitcoin Trust now purportedly holds in excess of 400,000 BTC, around double that seen a year ago: By our calculation, GBTC inflows over the past year have absorbed about a third of new Bitcoin supply. If the inflow pace doesn't subside, absorption will approach 50%, with less supply."
Due to macro trends and popular narratives, Bitcoin's correlation with the price of an ounce of gold has been on the rise.
With money printing by central banks set to accelerate gold's growth as it sets new all-time high day after day, the now-correlated Bitcoin stands to benefit.
Bloomberg gives four reasons why demand for Bitcoin is set to shoot higher
Published on Aug 6, 2020
by Cryptoslate | Published on Coinage
Mentioned in this article
Study: The majority of Americans don't understand how fractional banking works
Indicate that a significant number of Americans are not aware of how fractional reserve banking works.
Finance Redefined: Uniswap's bang ends in whimper, Sept. 16-23
The biggest event of this week was definitely the sudden release of Uniswap's token, UNI, which enriched many DeFi users by at least $1200 each.
Israeli regulators propose Bitcoin be taxed as a currency, not an asset
Four members of the Israeli legislature are recommending that digital currencies be treated more like fiat for tax purposes.
Coinbase wallet users targeted by new Android malware
This alien doesn't care about taking over the Earth, but it may steal your Bitcoins and dollars.