09.12.2021

Bloomberg report: bitcoin could become a global reserve asset

According to the September issue of Bloomberg’s Crypto Outlook, Bitcoin (BTC) will soon reach the $ 100,000 price level. The document notes that after the completion of the cryptocurrency market correction, everything will go upward.

It is not the first time that such a forecast for the price of bitcoin sounds. Crypto enthusiasts and experts have already voiced several very bold predictions, some even talk about the possible testing of the $ 1 million mark.

The report says that the price of $ 100,000 for Bitcoin and $ 5,000 for Ethereum is not only real, but is actually the “path of least resistance.” BTC has the potential to become a global reserve asset, according to a Bloomberg report.

“Crypto assets are in a vibrant bull market … Bitcoin is lagging behind the DeFi revolution led by Ethereum. A digital reserve asset on the way to digitalization and a building block of fintech is how we see cryptocurrencies # 1 and # 2, “the report says.

Bitcoin has long been called “digital” or “new gold” . Some participants in the crypto sector have even suggested using bitcoin as a global reserve asset instead of the US dollar. While such comparisons are often dismissed, Bloomberg recognizes the advantages of bitcoin over the dollar as a global reserve.

Some of the pluses mentioned are that bitcoin is “easy to transfer, it has a 24/7 price opening, is relatively scarce, and is not anyone’s commitment or project.”

In a global economy, where many central banks have opted not to shrink their balance sheets or reduce liquidity, scarce assets can be expected to take the lead. This, coupled with the multitude of progressive use cases for bitcoin, could push and prop up bitcoin prices.

“The stock market is mostly following the path of quantitative easing, which is evident from the upward trajectory of the balance sheets of the G4 central banks.

Both indices reflect exposure, but, in contrast to the S & P 500, BCGI includes Bitcoin, which gradually becomes a digital reserve asset in the world, the going digitization path “, – the report by comparing indices Bloomberg Galaxy Crypto Index (BGCI) and S&P 500.

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