Bloomberg, the website owned by the US billionaire Mike Bloomberg who mistakenly thought he could become the next Democratic Presidential Candidate, is still quite the name in financial circles. Therefore, if their website releases a study report which suggests that Bitcoin is gearing up for a 2017 styled bullrun, people tend to take notice.
If you recall, 2017 was the year Bitcoin went from $1,000 to $20,000 mostly on a worldwide pandemic of FOMO.
Bloomberg claims in the report entitled ‘Bitcoin Maturation Leap’ that the best known cryptocurrency Bitcoin, together with gold are now both considered hedge assets and are therefore expected to win the most from the recent COVID-19 induced market turmoil which saw the S&P500 take a dive from which it has yet to recover and oil plunge below zero.
The report stated: “Bitcoin and gold also stand to be primary beneficiaries of the unprecedented monetary stimulus that’s accompanied by a mean-reverting stock market.”
“Bitcoin appears to be discounted vs. its primary on-chain indicators. Representing adoption, the 30-day average of active addresses has stabilized closer to $9,000 vs. about $6,600 on April 2.”
Bloomberg thus agrees with Bank of America which currently forecasts that the S&P500 will shortly be looking for new lows as soon as the economic damage caused by the Covid-19 pandemic becomes clear.