The price of bitcoin could surge multi-fold from its current level to $400,000 as its institutional adoption has intensified, noted Bloomberg analysts. In their recent report on the primary cryptocurrency, they also suggested that BTC is replacing the “old-guard” gold more “sudden than gradual.”
Bitcoin to Reach $400K?
In the latest monthly report on BTC’s performance, Bloomberg’s analysts, led by senior commodity strategist, Mike McGlone, outlined the $50,000 price mark as the asset’s baseline support.
Although they acknowledged $60,000 as the key resistance in bitcoin’s way up, they believe it’s actually “eroding” due to the massive adoption from behemoths like Morgan Stanley, Visa, Goldman Sachs, Tesla, and more.
The report signified the entrance of those names as the cornerstone of mass adoption, which is “likely to accelerate” and underpin “its price for the foreseeable future.”
Additionally, the approval of several Bitcoin ETFs in Canada, Brazil, and other countries will eventually pressure US regulators to follow suit. A development that Bloomberg classified as “another bullish” milestone.
By referring to “past patterns,” the strategist predicted a considerable price increase right behind the corner.
“Common companions for strong annual rallies in the first-born crypto – low volatility and halvings – are aligned favorably. Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017.”
Should the asset indeed mimic even the more modest price surge, its value could approach $400,000, based on the “regression since the 2011 high.”
If the primary cryptocurrency sees such a spectacular price level, its market capitalization will go well above $7 trillion. This will make bitcoin 3-times more valuable than Apple and will close the gap with gold’s market cap.
BTC on its Way to Replacing Gold
Speaking of the yellow metal, the analysts doubled down on a previous assertion suggesting that the first-ever cryptocurrency is on its way to take over. Their most recent paper named gold the “old-guard” and predicted a “more sudden than gradual” replacement process.
Although the strategists admitted that such a scenario is not “necessarily bearish for gold” as its price has found support around $1,700/oz, they noted that “most indicators show a shifting global tide that favors the nascent digital currency as a reserve asset.”
Furthermore, they called the comparison between the two “digital vs. analog,” which could prompt a bullish future for the largest digital asset – bitcoin.
Interestingly, JPMorgan Chase & Co also spoke about the relationship between the precious metal and BTC and concluded that the cryptocurrency has already started to eat sizeable chunks of gold’s market share.