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Bitcoin Already Started to Replace Gold, Next Target $100,000: Bloomberg Report

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Bitcoin could top $100,000 as institutions and corporations prefer its digital finite supply better than gold, according to a new report by Bloomberg.

Bitcoin continues to attract more funds previously put in gold, bonds, and stocks, said Bloomberg in its latest crypto-related report. The paper forecasted $100,000 as the next possible price threshold while also outlining that BTC has begun the process of replacing gold as the hedge of choice.

Bitcoin Displaces Gold?

The narrative that bitcoin, also referred to as digital gold by some, will or has already started to replace the precious metal has been widely discussed within the cryptocurrency community in the past year or so. The COVID-19-induced financial crisis and rebalancing of the financial industry poured more fuel into the digital fire.

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Bloomberg strategists also reaffirmed this stance in their March Crypto Outlook paper. It reads that “the process of bitcoin replacing gold in portfolios is accelerating, and we see risks tilted toward more of the same.”

The document highlighted 2020 as BTC’s breakout year for institutional investors and corporations, as the cryptocurrency “gained legitimacy with declining volatility versus the opposite in most assets.”

The situation has also intensified in 2021 as “old-guard gold allocators” have focused on “prudent diversification.”

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“Bitcoin inflows are accelerating, along with gold outflows, and we see scant reason to reverse the trend. The ratio of the price of the potential global digital-reserve asset vs. an ounce of the old-guard metal appears on a path toward 100x, after breaching 10x that held resistance since 2017.”

Previously, analysts from the US multinational investment giant JPMorgan indicated that the bullion’s price could suffer in the upcoming years as BTC continues to take substantial chunks of its market share.

$100,000 is Next for Bitcoin?

The paper further explained that the primary cryptocurrency’s current state showcases that it has transitioned out of the realm of speculative risk assets into a “global digital store-of-value.” Moreover, its role will only intensify in the upcoming years, as the entire world is going digital.

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Keeping in mind the skyrocketing demand from institutions, while the production of new coins decreases every four years, Bloomberg’s report predicted that the next price target could be the entrance to a six-digital territory – $100,000.

Additionally, the document touched upon Grayscale and its Grayscale Bitcoin Trust (GBTC). The GBTC premium dipped into negative territory in late February compared to net asset value (NAV), which, historically, has marked the bottom of many BTC corrections.

GBTC Price vs. GBTC Premium. Source: Bloomberg
GBTC Price vs. GBTC Premium. Source: Bloomberg

Consequently, the analysts believe that reaching $100,000 by the year’s end is not out of the question. Thus, they joined the Co-Founder of Magnetic, William Quigley, who envisioned even a price tag of $150,000 per coin in the next twelve months.

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Bitcoin

The Cycle Started, Mike Novogratz Says – Bitcoin Boom Is Here; Jack Dorsey Boosts BTC’s Price

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Mike Novogratz is one of the essential names in the crypto space which is celebrating the booming price of Bitcoin.

Check out what he had to share with his followers and Twitter fans:

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Someone hopped in the comments section and said this; ‘Anyone who has not yet embarked on the crypto band wagon is a simple minded idiot who knows nothing about markets, freedom or wealth creation.’

Jack Dorsey boosts the price of BTC

It’s been also revealed that Jack Dorse said that Square could build a BTC mining system – this obviously triggered a more massive price race for the king coin.

At the moment of writing this article, BTC is trading in the green and the king coin is priced at $61,118.15.

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CNBC online publication just noted that Square CEO Jack Dorsey said late on Friday the company is considering jumping into BTC mining business.

Dorsey tweeted that the company is considering a “bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide.”

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Dorsey’s goal would be to make crypto mining more accessible. We suggest that you check out the complete thread that Dorsey shared on his social media account in order to learn all the available details.

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Pantera Capital’s Dan Morehead: Bitcoin (BTC) Already Up 100% in This Bull Run

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How big is median increase in Bitcoin (BTC) price in bullish market phases?

As Bitcoin (BTC) reclaims $62,000 level, Dan Morehead, CEO of the first-ever cryptocurrency-focused VC firm in the U.S., shares the comprehensive statistics of the last six bull runs for Bitcoin.

Bitcoin (BTC) price doubled in 87 days: Bull Run 2021

According to the latest tweet by Mr. Morehead, the Bitcoin (BTC) price witnessed a 2x increase in the first 87 days of the ongoing bullish wave.

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Unlike many other experts, Mr. Morehead identifies two separate “bull run” phases in 2020-2021. During the previous one, between March 16, 2020, and April 14, 2021, it took 394 days for Bitcoin (BTC) to increase its price 13x and print a new all-time high.

According to his infographic, the most impressive rally ended with a 106x increase of the orange coin’s price in 2015-2017.

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That said, the median Bitcoin (BTC) price bull run lasted for 300 days and increased the “king coin’s price” by 15x.

Will Bitcoin ETF mark the top of the BTC cycle?

At the same time, according to “The Next Price Era” letter issued by Pantera Capital on Oct. 6, 2021, the hotly-anticipated approval of Bitcoin (BTC) ETFs is listed amidst the possible “sell the news” events.

Mr. Morehead noticed that the launch of CME Bitcoin Futures and Coinbase direct listing triggered painful bear markets:

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Will someone please remind the day before the bitcoin ETF officially launches?  I might want to take some chips off the table.

As covered by U.Today previously, similar statements were made by CNBC’s Jim Cramer.

The seasoned analyst also revealed his plans to “cash out” 50% of his Ethereum (ETH) bags.

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Bitcoin Will Significantly Underperform Altcoin Market As New Crypto Price Era Unfolds: Pantera Capital’s Dan Morehead

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The founder and chief executive officer of Pantera Capital says that investors can expect altcoins to outperform Bitcoin (BTC) in the long term.

In a recent edition of Pantera’s Blockchain Letter, the head of the digital asset management firm outlines Dan Morehead’s key quotes from the SALT 2021 conference in New York. During the conference, Morehead said that even though his company has greatly profited from BTC, he emphasized that most future crypto gains will come from altcoin investments.ADVERTISEMENT

“My perspective is: Bitcoin has been amazing – Pantera Bitcoin Fund is up 67,000% since inception. However, I think the majority of future gains will be from tokens outside of Bitcoin. I know that sounds heretical to some people here, but that’s my professional opinion.”

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Morehead compares the rise of Bitcoin and its competitors to that of the tech industry boom during the late 1990s.

“It’s like saying in 1998 that [the] majority of future tech gains would come from outside Microsoft.

At the time, Microsoft was worth $218 billion, Apple $3.5 billion, Amazon was $2.2 billion. Google and Facebook were zero – they didn’t even exist. In the years since Microsoft did great – it went up 10x. However, 80% of the tech gains in these five stocks came from outside Microsoft.

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That’s the view I have here – I think BTC is going to go up a ton – like 10x. It’s a great investment…[but] I think the broader portfolio is going to outperform.”

At time of writing, BTC has a market cap of $1.156 trillion while all altcoins combined have a market cap of $1.327 trillion, according to CoinMarketCap.

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