In its latest forecast, referring to the desire of institutional investors to protect their investments, Bloomberg has stated that the price of Bitcoin is likely to increase eightfold and reach $ 400,000 by the end of 2021. Analyst Bloomberg believes
to the the report Coin Telegraph, Bloomberg Intelligence, cited the desire of institutional investors to protect their capital against the devaluation of the dollar as the reason for the eight-fold jump in the price of Bitcoin by the end of this year.
A Bloomberg analyst believes that bitcoin is becoming a “risk-free” asset to protect against dollar fluctuations.
Bloomberg chief strategist Mike MvGlone tweeted on Thursday that 2021 was a “turning point” for bitcoin.
By publishing a chart of the average price of Bitcoin and the Bitcoin Liquidity Index, he predicted that Bitcoin would become an asset to avoid the devaluation of the dollar. He further wrote:
Bitcoin is on the road to becoming a global reserve currency. In our opinion, the maturity of Bitcoin in 2021 can turn it into a risk-free asset.
The chart shows that the price of this digital currency will reach $ 400,000, referring to the behavior of Bitcoin in the past years. McGellon’s prediction is much higher than similar predictions such as the accumulation-flow model. The accumulation model predicts that the price of bitcoin will reach $ 288,000 between 2021 and 2024.
However, McGellon did not provide details on the factors involved in Bloomberg’s forecast. On the other hand, there has been talk for some time about bitcoin fluctuations and increased security for institutional investors. Bitcoin used to be a risky asset for these investors. With more and more reports of bitcoin buying by big-grain investors, it seems that these investors are not paying much attention to price fluctuations in this digital currency.
“In an interview with Time,” Michael Saylor, CEO of Microstrategy, which has one of the largest bitcoin reserves among the world’s largest companies, said:
My current mission is to correct the world’s balance sheets.
Silver started a new trend last summer among the world’s largest companies. BitcoinTreasuries, a company that monitors the bitcoin reserves of various companies, has estimated the value of the companies’ bitcoins at $ 73 billion.
Before Morgan Stanley became the first banking company to enter the Bitcoin realm, many opponents of digital currencies were arguing over the constant issue of investing in Bitcoin. Peter Schiff was one of those opponents. “A staunch supporter of gold,” he said in a statement.
Morgan Stanley has set a 2.5 percent limit on access to digital currencies for his wealthy accounts, which are up to six months old and are worth at least $ 2 million. This shows that Morgan Stanley has come to the conclusion that bitcoin is risky and wants to limit the legal obligations of investors who are losing money.
Federal Reserve Chairman Jerome Powell also called bitcoin an “alternative” to gold. Elsewhere in his speech, he said that bitcoin is not a threat to financial stability or position.
Recent data show that since the birth of Bitcoin, the average annual profit of this digital currency has been 200%.