Bloomberg Analysts: Bitcoin Demand Supports $55,000 BTC Price and $1T Market Cap by 2022
Bloomberg crypto analysts say that history suggests it is only a matter of time before Bitcoin reaches a market cap of $1 trillion, which would bring the BTC price to $55,000 per coin, and they argue that global demand supports the cryptocurrency rising throughout next year to reach that level by 2022.
According to the Bloomberg Crypto Outlook – December 2020 edition, Bitcoin will continue to advance in price into 2021 with “macroeconomic, technical and demand vs. supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap.”
The anaylsts predict that BTC's price should be around $40,000 in 2021 followed by around $55,000 in 2022 when Bitcoin inevitably breaks the $50,000 resistance.
The Bloomberg analysts believe that for Bitcoin, the $10,000 mark has now been flipped to become a critical support level after serving as the crypto’s resistance mark since 2017. The report argues that should the market experience another crash as occurred in March 2020, $10,000 would be Bitcoin’s floor.
Bitcoin Demand and BTC Market Maturation
The Bloomberg analysts, led by Mike McGlone on this crypto outlook, believe that 2020 will be looked back upon as key to Bitcoin’s mainstream evolution, helped along by extraordinary economic circumstances.
The Bloomberg analysts write:
“The foundation solidified in 2020 for the benchmark crypto, embraced in more global investment portfolios as holders expand beyond tech geeks and speculators, fueled by unparalleled quantitative easing, rising debt-to-GDP and declining supply.”
From December 2020, the analysts predict that the maturation of cryptocurrency investment may see Bitcoin’s price start to appreciate slower, but increasing demand will “result in more of the same” increases and that Bitcoin remains firmly in price discovery stage.
The report reads:
“Demand measures of Bitcoin and crypto assets appear to be gaining endurance for more of the same in 2021. From the Office of the Comptroller of the Currency (OCC) allowing banks to provide crypto-asset custody services to PayPal onboarding payments, clearing 2020’s volatility hurdle likely widens the path toward mainstream adoption.”
$55,000 Bitcon and $1 Trillion Market Cap
According to the Bloomberg Intelligence report, Bitcoin’s history suggests that a $1 trillion market cap by 2022 vs. about $300 billion on Nov. 13—is extremely possible. The analysts cite increasing demand, growing adoption and interest vs. Bitcoin’s increasing scarcity as a reason the BTC price will maintain its bull run in 2021 and will find resistance around the $50,000 price level.
The Bloomberg graphic depicts Bitcoin’s market-cap regression line since $10 billion in 2013 showing that the pioneer crypto is on pace for a $1 trillion market cap by about 2022. At this cap, the BTC price could soar to around $55,000 vs. the current level around $19,000 levels.
The report reads:
“If the future rhymes with the post-halving years of 2013 and 2017, and we factor maturity of about a quarter of the 2017 advance, Bitcoin may reach $40,000 in 2021.”
As 2020 draws to a close, the analysts conclude that there seems to be little to stop Bitcoin’s upward trajectory, particularly following its correction and a period of disdain. While they predict that BTC will move sideways for a few months, the price outlook of $40,000 for 2021 implies that this bull run not stopping anytime soon.
Image source: Shutterstock
Fidelity Digital Assets Head says Bitcoin Still Too Volatile To Be Store of Wealth