A Bitcoin at $50,000 is an important possibility for next year, according to Bloomberg Crypto’s latest monthly report.
These have been days of great expectations within the crypto world. Well, after several years of waiting for this moment, finally the price of Bitcoin Code is back on its upward path.
Touching briefly on its previous all-time high, and holding so far the promise of continuing to move forward until the $20,000 is broken. But that wouldn’t be all, because, according to Bloomberg’s analysis, a Bitcoin at $50,000 is possible.
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Volatility and growth in Bitcoin
Bitcoin’s history in the financial market has always been complicated. Since its birth eleven years ago, Bitcoin was seen by big investors as a simple curiosity. An idea that some computer fanatics had launched without knowing very well how the big international markets work.
However, this concept has been mutating over the years. Especially as Bitcoin has proven to have enough technical and financial capabilities to be demanded by people all over the world. This has made crypto-currency a financial asset to be reckoned with globally.
However, this new position as a global class financial asset has been accompanied by the reputation of being an extremely volatile product. This is due to the constant changes in the price of BTC, increasing or decreasing its value by several hundred dollars in a few hours.
Something that hasn’t prevented Bitcoin’s path from being undoubtedly upward in the long run. From its creation until today, it has gone from a value of practically 0 dollars to a price of 19,059 dollars at the time of writing this article. Thanks to this, institutional investors are beginning to accept that Bitcoin can be an asset worth owning.
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All this has generated high levels of speculation about how far the price of Bitcoin can go. This led Bloomberg Crypto, Bloomberg’s crypto market analysis unit, to mention the possibility of Bitcoin reaching $50,000 in its last monthly report:
„Bitcoin will maintain its propensity to advance in price until 2021, in our opinion, with macroeconomic, technical and supply-demand indicators supporting a target resistance of $50,000, which implies a market-capitalization ceiling of approximately $1 trillion.
Of course, this analysis does not necessarily imply that Bitcoin will reach $50,000. It is a reflection of the security that cryptomoney is beginning to generate within institutional investors. This is reflected in the increase in funds managed by Grayscale, the company used by institutional investors for the acquisition of BTC. So far this year it has gone from managing $2 billion to $10 billion.