Cryptocurrency

Bloomberg Analyst says: this is Why the demand for Bitcoin will continue to rise

Mike McGlone, senior commodity analyst at Bloomberg Intelligence, looked at the Bitcoin-a breakthrough in the direction of the 13.000 $, as only a few are expecting it. In a report from the 5. August repeated, the Analyst, bullish sentiment that he had expressed throughout the year.

The nine-page report, entitled “Bloomberg Crypto Outlook: Bitcoin Becoming Prudent”, outlines the main reasons why the demand for BTC in the future will increase.

Under the assumption of a stable supply, an increase in demand is likely to boost the crypto-currency market, which is now increased by around 80 percent compared to the previous year. Bitcoin alone is increased, according to data in the year 2020, 65 percent.

Reason No. 1: The number of active Bitcoin addresses is increasing, suggesting that there is a bull phase

Due to the increasing acceptance of Bitcoin as a Financial asset and a means of payment, the number of active BTC has begun addresses, to increase.

After the attempt by McGlone and Bloomberg, to set the price of the leading crypto-currency to its active addresses in relation to (by Coin Metrics), Bitcoin is currently assessing, with 11,700 $ 16.5 per cent.

“Our chart shows Bitcoin after the rise of Gold and one of the leading On-Chain-measurement of the acceptance of active addresses. The 30-day average of the addresses of Coinmetrics on 4. August led to a Bitcoin price of about 14,000 $, compared to about 11,000 $ on an automatic scale base since 2017.“

In a separate analysis of Blockchain analysis company Santiment, it was found that “the (daily active addresses), since 1. July 3. August for the third Time 1.08 million addresses reached“.

Santiment sees this Trend as a potential sign that the price of Bitcoin “is entitled to test the 12,000 Dollar range sooner rather than later”.

Reason no. 2: Grayscale, accumulates continue to BTC en masse

Grayscale Investments to continue to BTC en mass for its institutional investor clients.

“The Grayscale Bitcoin Trust now has allegedly more than 400,000 BTC – about twice as much as a year ago: according to Our calculations, the GBTC inflows have been absorbed in in the past year, about a third of the new Bitcoin-deliveries. If the pace of the inflow subsides, the Absorption of almost 50%, and at a lower offer.“

The Asset will also be large amounts of Ethereum on its Grayscale Ether Trust.

Significant in the context of the Open Interest has risen to the regulated BTC Futures, which is increases, in our view, “accelerated maturation and a tendency to price”.

Reason no 3: The correlation of Bitcoin with Gold is going to rise

On the basis of macro-trends and the popular theses on the correlation of Bitcoin with the price of an ounce of Gold is on the Rise:

“The highest 52 week correlation between Bitcoin and Gold of 0.35 shows that the crypto-currency developed finally to digital Gold.”

Because the money printing will accelerate by the Central banks, the growth of Gold, as it reached a new all-time high, will benefit the now correlated Bitcoin of it.

Reason no. 4: The Bollinger Band analysis predicts a BTC breakout in the direction of 13,000 $.

The textbook technical Bollinger Band indicator indicates a forthcoming “price breakout”, while the Charts put a motion to the Motto “higher, the path of least resistance” is near.

This means that BTC is likely to begin a strong upward movement – one of the McGlone speculated that they will bring the crypto-currency on at least 13,000 $.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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