The latest commodity report from Bloomberg, forecasts that Bitcoin (BTC) and Gold will continue to outperform other assets in 2020.
According to its June 2020 Crypto Outlook, Bloomberg says Bitcoin and gold are “top candidates to advance in 2020,” highlighting the current COVID-19 pandemic has seen both assets perform better than other commodities in value. And analysts say this uptrend is set to continue.
“Among the few assets up in this tumultuous year, gold and Bitcoin are building foundations for further price appreciation, in our view.”
For Gold, Bloomberg believes that the commodity is establishing a strong support at $1,700 per oz, which sets it up for an upward rally in price.
In the case of Bitcoin, they project a similar consolidation and uptrend. They term bitcoin a “resting bull” – one which unless there is a fundamental break in market confidence, the asset has no reason to do anything else than to rise in price as high as $20,000 to $28,000.
“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…If the stock market rolls over, gold and Bitcoin should gain buoyancy.”
…Something needs to go really wrong for Bitcoin not to increase in value. “Last year, the high was about $14,000, which would translate into almost double in 2020 if rotating within the recent band, and mean little in the big picture.”
Asides the Bloomberg prediction, other notable financial analysts have echoed the same sentiment of an uptrend for BTC price.
Notably, Robert Kiyosaki – author of best selling book “Rich Dad, Poor Dad” also recently expressed optimism on the growth of Bitcoin, Gold, and Silver.
Supporting analysts say the increasing global debt profile of nations, inflation, excessive money printing and an impending recession will further strengthen Bitcoin’s narrative as the “Digital Gold”.
Bloomberg’s crypto outlook also shows its expects Tether to pass Ether as the number two cryptocurrency courtesy of the strength of the dollar.
The report says the growth of Tether’s market capitalization is significant in the appreciation of Bitcoin (BTC):
“Interest in digital links to the dollar represents the need to transact and store value in the world’s reserve currency without an intermediary.”
“Absent an unlikely reversal in predominant crypto trends, it should be a matter of time until Tether passes Ethereum to take the No. 2 spot in total assets behind Bitcoin. Benefiting from widespread adoption with a viable case as a proxy for the world’s reserve currency, there seems little to stop the increasing adoption of the dollar-linked stable coin.”
Tether USDT had recently overtaken Ripple (XRP) to the third spot of the cryptocurrency market cap, with Bloomberg noting that the stablecoin will go on to surpass Ethereum (ETH).
In all, half way into 2020 many are keen to see if these Bloomberg forecasts will come true.
NOTE: Opinions expressed here are solely of the author for informational purposes not financial or investment advice.