Even though Bitcoin (BTC) is undergoing a consolidation period, there is a higher probability for the cryptocurrency to advance further. In the newest edition of its cryptocurrency outlook report, Bloomberg analysts vouch that Bitcoin could rise as much as $400,000 in 2021.
Bloomberg has released its newest edition of monthly cryptocurrency outlook titled “Rising Bitcoin Adoption Tide” on April 5. Bloomberg Intelligence Strategist, Mike McGlone predicts that Bitcoin could soon touch $400,000 based on past Bitcoin bull runs during 2017 and 2013, saying:
“Our graphic depicts bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since the 2011 high.”
Even though the report doesn’t provide a specific time-frame for when the predicted price level might be achieved, it did specify that over the next quarter the price is likely to breach $60,000 resistance and head toward $80,000 that could ultimately lead towards $400,000.
Bitcoin would replace gold as the global digital-reserve asset, cited the report.
Bitcoin peaked to all-time highs in the 12 to 18 months following the previous block reward halvings in November 2012 and July 2016, according to the report:
“The year after a supply cut (halving) is what 2021 has in common with 2017 and 2013, along with subdued volatility.”
The December 2017 peak represented a 50-fold rise from the average price observed during October 2015, when the 180-day volatility reached lifetime lows, per the analyst.
Meanwhile, investors are panicking that rising bond yields could dampen the prospects of inflation hedges such as gold and bitcoin, pushing their prices lower.
However, the Bloomberg analyst sees that bitcoin will remain relatively resilient amid a rising yield environment, saying:
“Rising real yields are a headwind for gold prices, but less so for bitcoin, still in its price-discovery stage.”