March 29, 2024

Bloomberg: Bitcoin looks undervalued and will rise to $ 18,000

Bloomberg: Bitcoin looks undervalued and will rise to $ 18,000

Bloomberg analyst Mike McGlone presented a forecast for Bitcoin price behavior. According to him, the price of Bitcoin(BTC) stabilizes around nine times the value of a troy ounce of gold.

Considering that the precious metal is currently worth about $ 2,000 per troy ounce, Bitcoin could eventually rise to $ 18,000.

The analyst believes that the # 1 cryptocurrency looks"Undervalued", and he bases his forecast on a record correlation between the price of a troy ounce of gold and the value of bitcoin. McGlone is of the opinion that bitcoin is “digital gold,” as cryptocurrency has the same properties as the precious metal.

It's about rarity and also about a slow paceincrease in the supply of these assets. It is also emphasized that "monetary" easing "of the central banks of a number of countries" can turn out to be a positive moment for cryptocurrencies in general.

The analyst also said that gold maypotentially rise to $3 thousand, giving a more bullish forecast than Goldman Sachs experts, who believe that in the next 12 months the troy ounce of the precious metal will rise to $2.3 thousand with still uncertain prospects for the further dynamics of the asset.

Another analyst, Mati Greenspan, formermacroeconomic strategist at eToro, and now the founder of the consulting company Quantum Economics, notes a record weakening of the correlation between Bitcoin and the S&P 500 index.

According to his letter to investors dated 5August, “if earlier this year we saw the correlation between Bitcoin and the S&P 500 at a record level since 2011, that is, at 0.6, now it is less than 0.2.”

Bitcoin mania is back

Also according to Bloomberg, Bitcoin maniareturned in its most blooming form. Bitcoin's price is rising again, along with other assets such as risk stocks and gold, which have already reached record highs.

After briefly surpassing the $ 12,000 level and a quick rebound, Bitcoin briefly returned to the $ 10,000 range, now the price is again confidently approaching resistance at $ 12,000.

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In general, the Bloomberg article does not explain exactly what the Bitcoin mania is and how long it will linger, but this publication can hardly be called an ordinary coincidence.

According to chief market strategist at Miller Tabak &amp; Co Matt Maley, if the price falls now and then rises and breaks the $12,000 resistance, the scenario could become decidedly bullish.

Bloomberg: Bitcoin looks undervalued and will rise to $ 18,000

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It looks like Bitcoin price increase this yearnot related to external and unforeseen circumstances. In this case, there are fundamental reasons related to the current monetary policy of states and the May 11 halving.

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