Bitcoin has been the biggest winner

A Bloomberg Galaxy report predicts an imminent rise in the price of Bitcoin (BTC) driven by 3 factors.

On the first argument, Bloomberg states that Bitcoin’s volatility will continue to decrease until the cryptocurrency is no longer a speculative asset. At the same time Bitcoin will continue to outperform Ethereum (ETH), XRP, Litecoin (LTC) and other altcoins.

Bloomberg also expects that the price volatility of Bitcoin (BTC) will continue to decrease as the cryptocurrency moves toward a form of digital gold.

According to the report, Bitcoin is showing a 12% drop in the last 365 days. Although in recent months, BTC has been overtaken in terms of performance by Ethereum (ETH), the second largest cryptocurrency by market capitalization presents a 21% loss in the same period. While XRP have fallen by 56% and Litecoin by 65.2%.

Despite the above, Bloomberg states that Bitcoin has been the biggest winner in the most important area of all: adoption. The report states that there is a direct relationship between adoption levels, market demand for BTC and, consequently, supply.

The adoption of Bitcoin is most clearly shown by examining the Grayscale Bitcoin Trust (GBTC). During 2020, the institution has been a great example of demand as it has seen a large increase of buyers. Data indicate that it has even bought more of the BTC produced by miners in a given period of time. Bloomberg confirms that the GBTC is consolidating around its 52-week and therefore expects the asset to reach new all-time highs.

Finally, the report concludes that central bank inflationary policy will be another important factor in Bitcoin’s performance. The policy will support the appreciation of Bitcoin as it continues to consolidate as digital gold. Therefore, Bloomberg concludes that the crypto market will only rally if Bitcoin does.

Author : Reynaldo