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- Bitcoin’s recent rally to $10,000 has renewed investor’s interest in the market, also drawing the attention of prominent traditional analysts and investors
- One prominent commodity strategist at Bloomberg explained that he believes BTC and gold are the two assets most-likely appreciate throughout 2020
- This comes as the cryptocurrency’s technical outlook begins growing incredibly bright
Bitcoin has seen some incredibly bullish price action in the time following its rebound from mid-March lows of $3,800.
It’s subsequent climb to $10,000 has revitalized crypto’s investors while also drawing the attention of traditional investors who are keen on discovering assets that can see high performance against a backdrop of global turbulence.
Earlier this past week, a spotlight was directed onto the benchmark cryptocurrency after legendary macro investor Paul Tudor Jones gave a venerable mention to BTC in a recent market outlook note.
Now, a commodity strategist at Bloomberg Intelligence is claiming that Bitcoin and gold are the two assets that are most likely to appreciate throughout the year ahead.
The Bull-Case for Bitcoin Grows Strong Following “Key Technical Break”
This isn’t the first time Bitcoin has rallied towards $10,000 in the time following its 2018 crash, although each rise past this level has been shortly followed by immense downside movements.
It’s important to note that this movement has been different from those seen in year’s past, however, as it has been primarily driven by spot buying pressure rather than margin.
This trend is elucidated while looking towards its dwindling open interest – a sign that leveraged traders have largely been sidelined throughout the course of this recent rally.
Raoul Pal – a global macro investor and the founder of the Real Vision Group – explained in a tweet thread following the crypto’s push past $10,000 that the chances of Bitcoin seeing vastly higher prices has grown significantly as a result of this movement.
“Whatever plays out, after a KEY technical break like today, the probability of vastly higher prices has risen dramatically. And this is confirmed by the stock to flow models by @100trillionUSD and the breakout has happened almost exactly at The Halvening,” he noted.
The stock-to-flow model he references suggests BTC will be trading at roughly $100,000 by the end of the year.
Bloomberg Intelligence Strategist Expecting BTC to See Upside
Mike McGlone – senior commodity strategist at Bloomberg Intelligence – explained in a tweet yesterday that he believes both Bitcoin and gold are the two assets most likely to appreciate during the year ahead.
“Bitcoin and gold sit atop our list of assets most likely to appreciate in 2020, on the back of unparalleled central-bank easing. Both have had significant shakeouts. Bitcoin is in an extended period of trading within a range and will eventually break out higher, in our view.”
Image Courtesy of Mike McGlone via Bloomberg Intelligence
Featured image from Unplash.