Bitcoin could soon hit $12,000: Bloomberg analysis

29 Jul 2020

The price of Bitcoin could soon go above $12,000, suggests Bloomberg’s mid-year report.

Both on-chain and off-chain indicators highlighted in the report point out the digital asset’s appreciation. 

One of the major metrics for Bloomberg is the number of active addresses. 

“The 2019 Bitcoin end-of-day high was $12,734, based on Bloomberg pricing. Unless advancing addresses abruptly reverse, history suggest Bitcoin may gravitate to that level,” says the report.

Bloomberg suggests that the continuous growth of Grayscale’s Bitcoin Trust or GBTC and the shrinkage of the premium versus the Bitcoin spot market is also a sign that the bulls are in control.

The report states that the recent decision by the U.S. Office of the Comptroller of the Currency permitting U.S. banks to provide custody for digital assets should add incentives for institutional investors.

There’s been increasing interest from institutions this year.  Indeed, a survey carried out by Fidelity in May of about 800 institutional investors in the U.S. and Europe shows strong cryptocurrency adoption, particularly Bitcoin. About 80% of institutions said they find cryptocurrency appealing, and 60% believe cryptocurrencies have a place in their portfolios.

Breaking down the number, 74% of U.S. institutional investors find cryptocurrency appealing, while 82% of European investors do. “A notable contrast is that 25% of European investors find the fact that certain digital assets are free from government intervention to be appealing, whereas only 10% of investors in the U.S. feel this way,” the report stated.