The latest commodity analysis from Bloomberg forecasts that BitcoinBitcoin and gold will continue to outperform other commodities in 2020.
In the market analysis and media firm’s June 2020 commodity outlook, Bloomberg positions Bitcoin alongside gold as its “top candidates to advance in 2020.” Partly spurred on by the COVID-19 pandemic, the report reasoned, both have performed better than any other commodity in 2020. And the analysts don’t expect that to change any time soon.
“Among the few assets up in this tumultuous year, gold and Bitcoin are building foundations for further price appreciation, in our view,” Bloomberg said in its report.
Bloomberg believes that gold is establishing solid support at $1,700 an oz: “Every day that passes above this level builds a firmer base for the metal to make the next move in its stair-step rally.”
It sees a similar consolidation and trajectory for Bitcoin. The cryptocurrencycryptocurrency has been trading in the $9,000-$10,000 range since it climbed out of the price pit caused by Black Thursday’s macro sell-off. Investors are accumulating at these levels, Bloomberg’s analysis concluded, creating a bedrock for future growth.
Continuing with its bullish analysis, Bloomberg even refers to Bitcoin as a “resting bull” that, unless something fundamental shatters confidence in the protocol, has no reason to do anything but continue to go up in price.
There has been wide speculation about the alleged correlation between Bitcoin and the stock market, but, according to new data, it’s Bitcoin and gold that have been moving in tandem with each other.
In its latest report, Coin Metrics shows that the correlation between gold and the world’s number one digital currency by market cap is quite high and has been so for the past several months.
As seen in the chart below, during the COVID-19 market selloff, Bitcoin lost more than half its value and fel...
“We view the benchmark crypto as a resting bull that likely needs something to change significantly in its 10-or-so-year history to not just resume doing what it was doing: appreciating,” the report stated. “If the stock market rolls over, gold and Bitcoin should gain buoyancy.”
In the unlikely event of a significant change for the worst, we expect the #Bitcoin price to continue appreciating. Unprecedented central-bank easing is accelerating Bitcoin maturation toward a digital version of gold, while accentuating oversupply constraints in most of the mkt pic.twitter.com/srX5mp575J
Upon release of the report, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone on Twitter reaffirmed that Bloomberg “expect[s] the Bitcoin price to continue appreciating” in light of “[u]nprecedented central-bank easing” that is making the "digital gold" meme more and more of a reality.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Texas sheriffs used power tools this week in retrieving $32,000 from a Bitcoin ATM after a Jasper County family said they were scammed out of funds, according to local law enforcement.
The family said it had lost $25,000 to the fraudsters.
An image shared by the Jasper County Sheriff’s Office on Facebook shows sparks flying as an official uses what appears to be a circular saw to crack into a Bitcoin Depot kiosk. Other images show stacks of hundred dollar bills, evidence bags, and a gas station...
The price of Bitcoin was little changed on Friday as U.S. Federal Reserve Governor Christopher Waller argued that the U.S. central bank could start lowering interest rates as early as July.
Bitcoin was recently changing hands at $104,300, flat over the past day and down 0.6% since Israel and Iran began exchanging missile attacks a week ago, according to crypto data provider CoinGecko. Ethereum was flat over the past 24 hours to trade just around $2,500, while Solana ticked up slightly.
With infl...
USDC issuer Circle was buoyant in pre-market trading Friday, climbing above $236 ahead of the opening bell. That put it ahead of the $235 price target set by Wall Street research firm Seaport Global, which initiated coverage of the company today with a buy rating.
But once the bell rang, the company's stock, which trades on the NYSE under the CRCL ticker, settled and is currently changing hands around $228, or 14% higher than its previous close.
Seaport announced that it was initiating coverage...
