On April 6, Bloomberg released the April edition of its monthly “Crypto Outlook,” in which it outlined the bullish narratives around bitcoin and the burgeoning industry surrounding it. The report was notably bullish, particularly as it came from a reputable legacy firm in the financial and media industry. Here are some of the highlights:
“Bitcoin Fills The Digital Reserve-Asset Need In Low-Yield World”
The record-low yields across the global economic environment have played a major role in Bitcoin adoption over the past year, and more investors are starting to take note. Bloomberg also highlighted the dichotomy between the recent performance of bitcoin against the performance of gold.
“Indicators Point To Rising Bitcoin-To-Gold Ratio”
The report repeatedly emphasized the superior properties of bitcoin and its fit as a monetary asset in the digital economy in contrast to gold. While the outlook on gold wasn’t bearish for the metal itself, the data and price action has led Bloomberg to conclude that bitcoin is replacing its monetary predecessor as the preferred non-sovereign reserve asset in investor portfolios.
“Bitcoin Replacing Old-Guard Gold Is More Sudden Than Gradual”
“Digital Vs. Analog: Bitcoin’s Upper Hand”
The report also highlighted on-chain analytics that shows that the supply of bitcoin on exchanges is continuing to decrease, despite bullish price action, which is the opposite of the trend observed during the 2017 bull cycle.
“Few Signs Of Bitcoin Holders Looking To Sell”
Another noteworthy highlight from the report was the expectation from Bloomberg that bitcoin was on a similar path as the 2013 and 2017 mining subsidy halving bull cycles, pointing to a price of $400,000 for the asset. The logarithmic, seemingly programmatic, price action of bitcoin over the years has investors salivating in the current no yield economic environment.
“Bitcoin Rhyme With 2013, ’17 Peaks About $400,000”