Bitcoin didn’t have the most effective last half of 2019, plunging from a year-to-date high of $14,000 in June to $7,400, wherever it sits as of the time of writing this. At its lows, the cryptocurrency fell as low as $6,600, languishing as BTC buyers did not step in amid selling pressure seemingly catalyzed by Chinese regulation of digital assets and therefore the operators of a multi-billion dollar Bitcoin scam selling their coins.
Despite the agonizing background, Bloomberg’s Mike McGlone of the business media giant’s Intelligence unit believes that Bitcoin incorporates a positive outlook heading into “2020 and the next decade” thanks to a confluence of factors.
This confluence, McGlone went as far as to say, may bring the cryptocurrency into the five-digit target the near future, which might be a welcome surprise for several investors within the industry, who has begun to assume that Bitcoin has reentered a “Crypto Winter” state over again.
Bitcoin to Run to $10,000?
Bloomberg’s McGlone believes that the bull case for Bitcoin is rapidly building, as long because the key support of $6,500 holds in the near future. In fact, the analyst went as far as to say that it's “only a matter of time” before BTC breaks the key resistance at $10,000. Why do you ask? Well, the Bloomberg analyst gave a confluence of reasons:
Firstly, he drew attention to the very fact that as gold rallies, thus too ought to Bitcoin. whereas the precious metal is presently trending lower, having peaked last summer in the inside of the trade war talks, the macro picture might begin to favor gold (and thus Bitcoin) heading into 2020; a possible recession, restart of the trade war because of hong kong and Xinjiang laws, and different underlying problems within the traditional system might boost different assets.
Secondly, McGlone opined that an ideal storm is building for the cryptocurrency in terms of its “basic premises” — mass adoption and a fixed offer cap. “Bitcoin is winning the adoption race among crypto assets and is changing into more and more scarce, that favors value appreciation. masses will get it wrong with a nascent asset, however, unless the fundamental premises reverse, there’s the next likelihood to sustain value appreciation vs. depreciation,” he wrote, in a seeming bid to support the concept that the halving can act as a negative supply shock to a market predicated on easy supply-demand economics.