Bitcoin is on Track Towards $14k by End of Year. In terms of the short-term price movement, the Bloomberg report postulated that BTC’s demand points to Bitcoin revisiting its 2019 peak value of $14,000 by the end of this year.
Additionally, Bitcoin inflows into the Grayscale Bitcoin Trust (GBTC), also point towards BTC rallying in the crypto markets.
Some of the leading Bitcoin demand indicators point to revisiting the 2019 high around $14,000, potentially this year…the market cap of the Grayscale Bitcoin Trust (GBTC) is approaching Bitcoin equivalent holdings of 500,000.
A year ago, this direct indicator of investor demand held less than half that amount. Inflows in GBTC, the largest exchange-traded product, absorbed about 70% of new Bitcoin supply in 3Q, we calculate.
Bitcoin’s Rising Prices, Increase Demand
The report by Bloomberg went on to highlight that Bitcoin was a unique asset in the sense that supply cannot be influenced by price. Therefore, adoption is a primary valuation metric.
Bitcoin also has a low market cap of $200 billion when compared to other major asset classes for many institutional investors. The low market cap is an attractive quality for Bitcoin and will lead to increasing demand as prices rise.
- Bloomberg has released October’s crypto outlook report
- The report predicts that Bitcoin is on track for $100,000 in 2025
- Bitcoin will continue appreciating in value as a result of increased adoption, but at a relatively lower pace when compared to its early years
- Bitcoin could very well retest its 2019 peak of $14k before the end of 2020
The team at Bloomberg has released the October Crypto Outlook report in which they predict that Bitcoin will be valued at $100,000 by 2025. According to the report, Bitcoin’s value will continue appreciating in value as witnessed since its launch in 2009. However, BTC’s growth in price henceforth will be at a slower pace when compared to its early days.
Furthermore, Bitcoin has a tendency to add zeros every few years and an extra zero will be possible by 2025. The report explains this phenomenon as follows.
Bitcoin could continue doing what it has for most of its nascent existence, appreciating in price on the back of increasing adoption, but at a slower pace as we see it.
The first-born crypto has had a tendency to add zeros to its price from around $10 in 2011. It took about four years to go from $1,000 to $10,000 in 2017, so doubling that time frame for maturation could get the price toward $100,000 in about five more years.