A recent Bloomberg report concluded that Bitcoin may be priming for a massive bull run.
A recent Bloomberg report states that Bitcoin (BTC) is preparing for a massive bull run.
Even the report’s name is bullish — “Bitcoin Maturation Leap”. The report mentions a number of reasons that the Bitcoin market is maturing, and that it is due for a bull run. It also affirms that “Bitcoin is gaining relative fuel as stocks reset, if history is a guide”.
Bitcoin becoming digital gold
Furthermore, Bloomberg says that Bitcoin and gold, both considered hedge assets, are expected to win the most from the recent COVID-19 induced market turmoil:
“Bitcoin and gold also stand to be primary beneficiaries of the unprecedented monetary stimulus that’s accompanied by a mean-reverting stock market.”
It also observes that Bitcoin’s correlation to gold “has increased to all-time highs”, concluding:
“This year will confirm Bitcoin’s transition from a risk-on speculative asset to the crypto market’s version of gold.”
The report reiterates that 2020 will be the year when Bitcoin becomes digital gold:
“This year marks a key test for Bitcoin’s transition toward a quasi-currency like gold, and we expect it to pass.”
Futures tamed Bitcoin’s bull run
According to the Bloomberg report, the inception of Bitcoin futures has tamed “the raging Bitcoin bull market”. At the same time, it says:
“Increasing futures open interest, declining volatility and relative outperformance despite the stock-market shakeout indicates Bitcoin is maturing from a speculative crypto asset toward a digital version of gold.”
The report says that we can expect Bitcoin volatility to continue to decrease. This is significant since the all-time low volatility in October 2015 “marked the beginning of the bull market”.
Bitcoin is undervalued relative to on-chain metrics
The Bloomberg report asserts that Bitcoin is undervalued relative to some key indicators. For instance, on April 2, one of the indicators pointed to the $9,000 Bitcoin price versus the actual $6,600. It also states that those metrics support the transitioning of Bitcoin to digital gold:
“Increasing addresses support Bitcoin’s transition toward a digital version of gold”.
With central banks around the world pouring trillions of dollars into the economy, 2020 may be the year when Bitcoin becomes the new digital gold for the digital economy.
Source: , CoinTelegraph
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