Bloomberg: bitcoin is still on track to reach $100,000

The newest investing report from Bloomberg Intelligence has just out. He believes that the bull market is still going strongly, and that bitcoin and ether have room to rise even higher. However, due to excessive speculation, smaller digital assets may perform poorly.

Bitcoin has a chance to continue to rise despite the speculative excesses of 2021.

– the report says.

As Bloomberg experts explain, cryptocurrencies perform decently against inflationary commodities. While oil prices have increased due to the risk of war in Ukraine, bitcoin and ether prices have fallen.

Bloomberg Galaxy Crypto Index fell by about 20% in 2022. However, the Bloomberg Commodity Index Total Return rose by about 10%. Nevertheless, the report suggests this is only a “temporary situation,” and trends could reverse.

Among the specific supply, demand, adoption, economics, and technological improvements, the cryptocurrency market achieved better results than the commodities market. Technological advancements have strengthened the ratio of the value of digital assets to the oil market.

A good example of technological progress is Bitcoin, which is gaining popularity as a global standard for digital assets while oil is being replaced by decarbonization and electrification.

Additionally, the research emphasised that bitcoin is a finite-supply asset by definition. This means that regardless of demand, the supply of BTC will remain constant. On the other hand, oil is the polar opposite, and when oil prices rise, producers boost production.

Although the cryptocurrency market has exploded, there are now more than 17,000 other coins. These coins reduce the demand for bitcoin, whose share has fallen below 42%.

In March 2021, bitcoin’s share of the crypto market capitalization was 20% higher – 62.2%. However, half of this increase may be due to an increase in ether’s share, increasing from 11% to 18.8% in the same period.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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