Bloomberg said Tuesday that bitcoin could double to $20,000 this year. According to Bloomberg, the most common cryptocurrency has many favorable factors for this.
“In our view, bitcoin will reach a record $20,000 per unit this year if it continues to follow the 2016 trend,” Bloomberg said.
Researchers said bitcoin’s rise is driven by increasing acceptance of digital currencies, the ability to trade bitcoin futures, and a steady decline in volatility, which should support its propensity for higher prices.
Technically, bitcoin has already strengthened at $8,000 per unit and could go higher if it decisively surpasses the $10,000 bar.
Bloomberg said it believes bitcoin is benefiting from the coronavirus pandemic for several reasons.
First, the historic decline in stock markets because the virus did not spread to the cryptocurrency market, as the brief dip in cryptocurrency was “quickly overcome.” Second, the virus accelerates the transition from paper money to digital money. And third, new quantitative easing policies from central banks around the world are helping to popularize assets like gold and bitcoins.
But Bloomberg’s bullish view of bitcoins does not extend to other cryptocurrencies. “We see little upside potential for the price of ETH in the absence of a rising wave from bitcoins,” Bloomberg said.
Bloomberg joins other influential investors looking to bitcoin, including hedge fund manager Paul Tudor Jones and billionaire investor Chamath Palihapitiya.
As a reminder, Bitcoin rose 1 percent to $9,762 on Wednesday.