From an analysis done by Bloomberg, Bitcoin has performed much better right now as compared to the 2017 Bitcoin bull run. Bitcoin is proving its traditional critics that the current bull run cannot be compared to the one that happened in three years ago.
From a publication done by Bloomberg on Nov 27th, there were highlights of a Bitcoin bullish future with more power and users.
According to Bloomberg, the clear indicators that Bitcoin is in good books are Bitcoin futures open interest, hash rate, non-zero wallet numbers, and lack of correlation between Bitcoin and other micro assets.
From the technical analysis of market and wall street’s news, Bitcoin is way more liquid than it was in 2017. Bloomberg burst the bubble of crypto analysts who believe that the price gains are just a bubble. It indicated that Bitcoin has a stronger and better blockchain and that gives it an edge, as compared to last time when its blockchain was weak.
According to the CEO of Nexo, Bitcoin may hit an all-time high by the end of the year. He added that Bitcoin is indeed a digital gold, and once it gains 10% of the market cap of gold, then it will be untouchable.
Contrary to expectations, the Bloomberg analysis did not face criticism which shows that many people have embraced Bitcoin. It’s latest eight-month growth spurt tells that it has outshined other macro assets, and according to Skew – an analytics company – Bitcoin’s year-to-date returns are at 135%, which cannot be compared to gold at 19% or S&P 500 at 12%.
Bloomberg believes that Bitcoin may replace gold as institutions are switching to cryptocurrencies. The massive appreciation of Bitcoin and declining performance of gold shows that Bitcoin is king. Bloomberg Intelligence chief strategist Mike McGlone believes that Bitcoin has been a real game-changer, especially when it comes to institutional investors.
Even though there is so much buzz about Bitcoin, McGlone still believes there is still hope that there is hope for gold in the next year and it may gain $2000. From the increase in support layers end of the month gives a foundation of the increase in the price of gold come next year.
As much as there is hope for gold, it will be hard for it to catch up with gold.
Photo by Frank Busch on Unsplash
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