Bitcoin (BTC) continues to convince some of its fiercest traditional critics of mainstream finance, while Bloomberg admits that this upward trend isn’t looking like 2017.
In a Nov. 27 article, the post, known for its pessimism, highlighted a number of Bitcoin metrics that point to a bullish future despite the $ 3,000 drop in prices on Thursday.
Bloomberg: Bitcoin market is “much more liquid”
A record increase in open positions in Bitcoin futures, a wallet greater than zero, a hash rate, and a lack of correlation between Bitcoin and other macro assets were used as evidence.
“Just look at the technical details of the market and Wall Street’s growing adoption of the world’s largest digital currency.”, started.
“And while trading doesn’t always go smoothly, the $ 315 billion digital currency is much deeper and more liquid than it was in the last boom of 2017.”
Referring to what he calls a “cryptocurrency fanatic,” Bloomberg dismissed the idea that current price gains are just another bubble. Among them was Mati Greenspan, a regular at Cointelegraph.
“It’s different now,” he commented.
“The last time we saw Bitcoin this high, the blockchain was on the verge of collapse, but the network has improved since then.”
In a separate interview with Bloomberg TV on Friday, Antoni Trenchev, CEO of the world’s largest cryptocurrency lender Nexo, predicted that Bitcoin would hit a new all-time high by the end of 2020, adding:
“The digital gold story is stronger than ever. If Bitcoin captures just 10% of gold’s total market capitalization, we’ll be at $ 50,000 in no time.”
BTC’s macro performance is suppressing gold
The lack of criticism in the article reflects the growing adoption of Bitcoin as real capital.whether the investment interest comes from retail or institutional circles.
Part of the positive image for the cryptocurrency can be attributed to its eight-month period of growth compared to March, during which it consistently outperformed other macro assets. Even after dipping to $ 17,000, Bitcoin’s return is 135% to date, up from 19% for gold and 12% for the SP 500.Confirm the data from the skew analysis resource.
In Gold’s case, Mike McGlone, the chief strategist at Bloomberg Intelligence, who has long deviated from the broader narrative to see Bitcoin completely optimistic that institutions will continue to stack cryptocurrencies in the future, believes.
“Replaces #Bitcoin #Gold? #Futures and Cashflows Say Yes: The rise in futures open interest and the inflows of Bitcoin investors in the face of the same drop in gold suggest that we believe the #cryptocurrency is gaining an advantage in appreciation, ”he tweeted earlier this week.
McGlone added As a result, this gold should experience a rally next year, with the precious metal leaning “cheaply” in the direction of the recovery of USD 2,000.
“The decline towards the support layers towards the end of November should provide a basis for further gains in the gold price,” he wrote on Friday.