Some analysts at Bloomberg have predicted that Bitcoin will maintain its bullish momentum amid the surge in inflows to the Bitcoin market following the dumping of Gold in favor of the digital asset. Such a shift in appetite has prompted analysts at Bloomberg to predict the continuous rise in the price of Bitcoin.
The strategists believe that the strong support at $30K recently established by Bitcoin despite a sudden plunge is a testament to the point that the digital asset will likely continue its bullish move, thereby targeting $50K any moment from now.
Comparison Between Bitcoin and Gold in Terms of Inflows and Outflows
This prediction was included in the analysts’ February summary and forecast of the crypto market’s direction. Besides, the strategists asserted that the continuous inflow of funds into the Bitcoin market unlike gold is proof of investors’ diversion of money towards cryptocurrencies.
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JP Morgan and some experts of financial institutions have agreed to the speculation that Bitcoin has now replaced gold as investors’ preferred choice. Bitcoin is now seizing a part of gold’s market l share. JP Morgan also anticipated that the price of gold would likely nosedive following a sharp drop in the demand for the traditional safe-haven asset. Now, analysts at Bloomberg have agreed with their counterparts at JP Morgan.
Their monthly report released this month also included a submission from the strategists. They maintained that in addition to the massive inflows into Bitcoin, there is still the potential to grow compared to gold. Thus, financial institutions are now finding more succor in Bitcoin due to the potential to rise higher.
They looked into the Grayscale Bitcoin (GBTC), which is worth $24 billion, which is less than 25% of the $200 billion in gold’s ETF. in Feb. 2021. This testifies to the GBTC’s huge growth since 2020 because just last year, its market capitalization was around 1 percent of gold’s market cap last year.
Bitcoin Now Moving Far Higher Compared to Gold
In terms of forecast and price performance, the strategists highlighted the importance of Bitcoin’s sudden rise to the $30K to $40K zone. The currency later made a stunning rise to $42K before starting a consolidation. Between January and February, Bitcoin has been ranging between $30K to $40K, a consolidation pundits see as the start of a move towards the $50,000 target. Yesterday, BTC briefly hit $40K, a move Bloomberg strategists believe is one of the hurdles the asset will face in its bullish run to $50K.
Looking at the general overview of the crypto market, the strategists are expressing strong optimism the BTC is still in the middle of its long-term rally. They argued that Bitcoin is drastically falling against gold, hence, proof of BTC’s probable bullish movement against gold, and at this time, a massive move ahead.
Now, BTC/XAU hit a record level yesterday from the market report. There is a possibility that Bitcoin will keep rising higher against the yellow metal. Since March last year, BTC has been going opposite the USD while the crypto market fell during the rise in USD price. Recently, when BTC fell from its all-time high and started a correction, the USD made a brief rally.