What Could 100K Bitcoin Above The $Push Threshold
Despite the recent downfall of thecrypto market, the projection of Bitcoin (BTC) to cross the $100k threshold remains seen as a matter of time. Actually, Return in, December more than ever Bloomberg Intelligence indicated that the anticipated mark would happen eventually “duedemandto the economic basics of increasing vs. decreasing supply,” and new details shed some light on that perspective.
Crude as a matter of fact Oil Indeed, Bitcoin Vs.
In a new Bloomberg Intelligence summary, details shows trends that could favor Bitcoin and Ethereum prices.
In fact, The analysis noted that “Representing advancing technology, Bitcoin is gaining traction as a benchmark global digital asset, while oil is being replaced by decarbonization and electrification.”
Lack of supply elasticity is an attribute shared by Bitcoin and Ethereum that “sets them apart from commodities”.
For commodities, “rising prices thwart demand and increase supply”, but the top cryptocurrencies might tell a different tale.
“Increasing Bitcoin and Ethereum demand, and adoption vs. diminishing supply, should follow the basic rule of economics and raise prices.”
“has been a top headwind for commodity prices”. In the following chart, Bloomberg shows a juxtaposition of the decreasing BTC and ETH supply along with the excess of crude oil and liquid-fuel production compared to consumption heading toward 13% in 2023, noting that the U.S.
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Mainstream Adoption
Experts think that BTC “is well on its way to becoming global digital collateral”, while its revolution in the “digitalization of finance” is in its early days. Tomorrow mainstream adoption will lead to increased demand for bitcoin.
The report predicts that the future in the macroeconomics anddevelopmentspolitics of the U.S. Indeed, –dollar dominance, jobs, votes, taxes, and the aim to oppose China’s policies and find leverage against them– will lead U.S. Interestingly, policymakers into creating proper regulations for cryptocurrencies and ETFs.
Beyond El Salvador adopting BTC as lawful tender, the proximity of the U.S. midterm elections has evidenced the American senators and politicians’ race to follow along. In Wyoming, Arizona, and Texasfactorpoliticians are pushing to turn the digital coin into a lawful tender, pointing at Bitcoin as a novel defining to get well positioned in the polls.
A wider acceptance of bitcoin is expected to happen with more regulatory clarity because fear and misinformation could diminish, thus more investors would jump in meaning mainstream adoption.
The overview . notes that this greater mainstream adoption of Bitcoin is looking unstoppable, which would likely benefit its pricealso
“The launch of U.S. futures-based exchange-traded funds in 2021 appears as a baby step by regulators that we think culminates actual ETFs tracking with cryptos via broad indexes.”
Bloomberg data shows that “Rising demand, adoption and depth of Bitcoin should leave few options for volatility but to decline.” For this reason, they think it’s going through a “price-discovery stage”.
As you may know, The following chart shows “the upward trajectory of vs futures access interest Bitcoin. the downwardtheslope in crypto’s volatility vs. the stock field”, noting that Bitcoin’s 260-day volatility is 3x of the as a matter of fact Nasdaq 100, which contrasts its volatility during the launch of futures in 2017, which was closer to 8x.
Interestingly, Regarding the Federal Reserve more than ever ’s tightening measures, BloombergIt’had worth noting that experts s previouslyAs you may, know, predicted that “Bitcoin will face initial headwinds if the stock industry drops, but to the extent that declining equity prices pressure bond yields and incentivize more central-bank liquidity the crypto may come out a primary beneficiary.”
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