A recent Bloomberg report states that Bitcoin (BTC) is preparing for a massive bull run in 2020 comparable to the one in 2017 🚀 Would you agree?https://t.co/F7eKcwJ1XI — CryptoCurrency News (@CryptoBoomNews) April 22, 2020
It has been reported that the report mentions a number of reasons that the Bitcoin market is maturing, and it is due for a bull run. Also, it affirms that “Bitcoin is gaining relative fuel as stocks reset, if history is a guide”.
However, Bloomberg says that Bitcoin and gold, both considered hedge assets, are expected to win the most from the recent COVID-19 induced market turmoil.
“Bitcoin and gold also stand to be primary beneficiaries of the unprecedented monetary stimulus that’s accompanied by a mean-reverting stock market.”
It also observes that Bitcoin’s correlation to gold “has increased to all-time highs”, by stating:
“This year will confirm Bitcoin’s transition from a risk-on speculative asset to the crypto market’s version of gold.”
Likewise, the report restates that 2020 will be the year when Bitcoin becomes digital gold by adding:
“This year marks a key test for Bitcoin’s transition toward a quasi-currency like gold, and we expect it to pass.”
According to the Bloomberg report, the inception of Bitcoin futures has tamed “the raging Bitcoin bull market”.
At the same time, it says:
“Increasing futures open interest, declining volatility and relative outperformance despite the stock-market shakeout indicates Bitcoin is maturing from a speculative crypto asset toward a digital version of gold.”
Also, the report says that people can expect Bitcoin volatility to continue to decrease, as this is significant since the all-time low volatility in October 2015 “marked the beginning of the bull market”.
The report also states that Bitcoin is undervalued relative to some key indicators. For example, on April 2, one of the indicators pointed to the $9,000 Bitcoin price versus the actual $6,600.
It also states that those metrics support the transitioning of Bitcoin to digital gold by saying:
“Increasing addresses support Bitcoin’s transition toward a digital version of gold”.
Thus, with central banks around the world pouring trillions of dollars into the economy, 2020 may be the year when Bitcoin becomes the new digital gold for the digital economy.