Why Is Bloomberg So Sure Bitcoin Will Hit $20k This Year?

Bloomberg, the international financial website named after the former New York mayor and founder, releases a monthly Crypto Outlook report. In it’s June issue, Bloomberg noted that ‘something has to really go wrong for bitcoin not to appreciate in value.’

In fact, Bloomberg is so sure that they are now forecasting $20,000 before the year is over.

What has changed?

Before we get into the technical details, allow us from The Satoshi Times to remind you that Bloomberg made the bullish call at the end of April to predict Bitcoin at $10k before the halving, a level it indeed reached (and repeated).

However, for now to assume that the most famous cryptocurrency will reach a record high of $20,000 (and possibly $28,000, this year) we must ask: what has changed?

Well here’s the skinny. Bloomberg stated in their report that “Covid-19 is hastening the shift away from paper money and stimulating plenty of quantitative easing, which is helping independent stores-of- value such as gold and bitcoin.”

“Last year, the high was about $14,000, which would translate into almost double in 2020 if rotating within the recent band, and mean little in the big picture.”

Hedge Funds foresee downturn

On top of Bloomberg’s prediction comes the fact that many hedge funds foresee stock markets, which have been on the up recently because of a positive US Jobs report, could soon take another dive as the V-shaped recovery that many had hoped for, will fail to materialize.

Although analysts agree that there will be a short-lived hype as the Coronavirus dangers have now receded, the fact still remains that many of the jobs lost will not easily return. Therefore, hedge funds expect a changed economy to become clear after the summer, when stocks will trend downwards again.


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