It appears that a brand-new trend is sweeping the mass media. That covers institutions in the same domain that have a long history of analyzing and assessing the financial and economic field. In the US, one such media company is Bloomberg, which is deeply rooted in the stock market and the wider space of Wall Street. However, the same company also has a growing cryptocurrency desk that is focused solely on blockchain technology and its application in the space of fintech. Now, it looks like the same part of Bloomberg is aiming to win the race of big and spectacular predictions of the future course of the bitcoin’s token price.
According to the analysts of Bloomberg Crypto, that figure far exceeds that of many other media companies and even banks like JPMorgan. Instead, these experts on cryptocurrencies believe that the price of BTC tokens could reach nearly half a million USD this year. More precisely, that figure stands at 400,000 USD, according to Bloomberg. While it might seem borderline insane even to those who follow the same field (and especially to them) there is still an interesting pattern behind this borderline-insane prediction. It is related to the price of BTC, but also the way mass media in general tries to approach this phenomenon in the already fast-moving age of social media, esports, and many other digital-only global ventures.
Regular Historic Openings
Bloomberg Crypto division of this financial media giant has a clear idea about one potential scenario for the future path of the BTC price. More precisely, that scenario could take place in the next eight months and result in a bombshell of a price level. In their analysis, the Bloomberg experts took the latest bull run and compared it to the very steep rallies that took place in 2013 and 2017.
Both of these resulted in a massive increase in the price value of the BTC token and all of them spurred on other digital currency networks. While only a small number of these existed in 2012, there was plenty more in place for the 2017 bull run. Today, there are thousands of the same altcoins on the market. Yet, preceding all of these bull run moments was one shared fact – halving. Now, the Bloomberg report predicts the possibility of the same event having an incredible impact on the present state of the crypto market.
One of the key elements of the recent success of the bitcoin network is also one that is regularly overlooked in many quarters. However, Bloomberg is not one of them. The media company and its crypto specialist are correctly assessing that the halving process, which previously took place on several occasions, is an important factor in the current prolonged bull run. Essentially, halving represents the moment when the miners of the bitcoin network get their rewards cut in half. That means that the network rewards its supporting system with less token, which was designed as a means of keeping the supply of BTC relatively limited, without any inflationary or deflationary mechanism.
The process is essential for the entire concept of the bitcoin network, but it is just as important for the price movements, having in mind the decade-long history of bitcoin. Here, the analysts examine the graphics of the BTC price charts from these periods. They saw a 55 times gain in 2013. In 2017, that gain was set at 15 times. If these were taken into consideration, one scenario puts the possibility of a ceiling price for this bull run at 400,000 USD. With a price tag of nearly half a million USD, the playing field of the crypto domain would be a completely different ball game.
Rhymes of History
Performances of the past by no means a definite trajectory of the present, let alone of the future. But, there is a level of rhyming in a financial sense in history and traders know that as well. This is why analysts take the same factor into very serious consideration. The previous BTC halving process took place in May 2020. The rhyme, in this case, is an expectancy of solid gains in the period of 12 to 18 months after a halving takes place.
Besides, the network should also see a drop in volatility, at least in comparison to the worst instability the crypto market saw so far. Instead, the trajectory of the price in the coming months should be a lot more stable if the market is to see some kind of repeat of the patterns from the previous two huge bull runs. On both of those occasions, the measures of 180-day volatility saw their lifetime lows. Something similar happened outside of the big bullish periods. In September 2020, the volatility level of the BTC token also reached a record low figure.
There are voices in the crypto community suggesting that the present predictions are either downright untrue on technical grounds or that they present a publicist case that will appeal to esports players, crypto evangelists, and others like them. These are individuals or even organizations that are already sold on the concept of digital currency. However, others point to the potential of a fast rise in bond yields. That could especially in the US dilute the overall appeal of both bitcoin and gold as a form of inflation hedge.
That scenario would provide some serious headwinds for any digital currency, as well as for the more traditional hedge in the form of gold. Yet, their worries are yet to materialize. With BTC climbing across the 60,000 USD mark and ETH token reaching its new record price at nearly 2,200 USD, the present state of crypto markets is full of tailwinds. Bloomberg Crypto assessment of 400,000 has little to do with the present situation and market forces. But, it does feed into the narrative that crypto can presently, in the minds of so many, do whatever it likes under the right circumstances.