Bitcoin “on Track to Hit Six Figures in 2021”: Bloomberg
Bloomberg has published a report arguing that Bitcoin has a greater chance of trending toward $100,000 than $20,000. The team also highlighted Ethereum and Tether’s increasing market dominance.
Bitcoin to six figures? Bloomberg thinks it’s likely to happen this year.
Bloomberg Shares Crypto Forecast
Bitcoin could break $100,000 this year, according to Bloomberg.
In a June crypto outlook report, strategists at Bloomberg Indices noted that crypto is currently in an upward trend. Highlighting Bitcoin’s recent rise, the report argued that the number one crypto “is on track to hit six figures in 2021.”
The report surfaced amid a period of cooldown across the crypto market. While Bitcoin has risen in price since breaking its key $20,000 resistance level in December, it’s down about 42.4% from its April highs. Nonetheless, Bloomberg argued that the asset is more likely to sustain an upward trajectory than draw down to late 2020 levels. The report read:
“Bitcoin is more likely to resume appreciating toward $100,000 resistance rather than sustaining below $20,000.”
The report also highlighted Ethereum’s growing importance in the cryptocurrency ecosystem. Noting Ethereum’s role as the number one smart contract platform and the hub for thousands of crypto tokens, the report described the network as “a key building block for the digitalization of finance.”
Bloomberg suggested that Ethereum could take Bitcoin’s place as the number one crypto asset by market capitalization, given that “the trend that appears enduring is Ethereum gaining market share vs. Bitcoin.”
Ethereum’s market cap briefly hit half the size of Bitcoin’s last month but has slightly lost pace against the number one crypto since May’s market-wide crash. Nonetheless, Bloomberg notes that Ethereum is in a strong position since it is “uniquely situated as the top provider of virtual shovels amid the crypto gold rush.”
It also shared the view that ETH could follow “a 2017 Bitcoin-like flight plan” towards the end of the year. Bitcoin memorably hit a high of $10,000 in December 2017 before almost doubling to a value of around $19,600 in the space of a week.
In addition to Bitcoin and Ethereum, the report also highlighted the third biggest crypto by market cap, Tether. According to Bloomberg, Tether’s growth reflects “the digitalization of money,” with the U.S. dollar maintaining dominance over other traditional currencies. It also added:
“We believe it’s just a matter of time before there are crypto ETFs.”
Bloomberg has painted an optimistic future for cryptocurrencies in the past. In April, a report suggested that Bitcoin could become a global reserve asset, while the same team predicted Bitcoin’s path to a $1 trillion market cap late last year.
Bitcoin is currently trading at $36,883, which puts its market cap at $688.68 billion.
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