Bloomberg has just released its monthly Bitcoin Outlook report, and it seems to confirm the theory that BTC is slowly replacing gold in investment portfolios. Bitcoin has also gained a new level of legitimacy with a decline in volatility.
“The process of Bitcoin replacing gold in portfolios is accelerating and we see risks tilted toward more of the same. In 2020, the benchmark crypto gained legitimacy with declining volatility vs. the opposite in most assets. In 2021, we see little to stop the process of old-guard gold allocators simply focusing on prudent diversification.”
In regards to Bitcoin’s price in the future, Bloomberg believes that $100k is the next logical threshold for BTC, taking into consideration the demand for digital assets on micro and macro levels.
“Past Bitcoin patterns are more likely to prevail and point to about $100,000 as a key threshold in 2021, we believe. Unless favorable technical, fundamental, macro and microeconomic trends reverse, Bitcoin should be set to keep appreciating.”
Currently, Bitcoin is being traded at $49,300 after it tested the $52k resistance level yesterday. The latter price area and the psychological price area of $50K seem to be some tough ones for the King of Crypto, but they are the ones that will decide whether BTC keeps the bullish momentum through the first half of March.
In case the $50k resistance is not conquered, there is a big chance for BTC to drop to $42k as this is where the 50-day moving average is placed.