Bitcoin continues to attract funds previously invested in gold, bonds, and stocks. This is what Bloomberg said in his latest cryptocurrency report. The platform forecasts another price threshold of $ 100,000, while noting that BTC is starting the process of replacing gold as a store of value.
Bitcoin is replacing gold?
The claim that Bitcoin, often referred to as digital gold, will replace or have already begun to replace the precious metal is the subject of wide debate among the crypto community. The financial crisis triggered by COVID-19 and the restructuring of the financial industry further fueled the demand for digital currency.
Bloomberg’s strategists reaffirmed this position in March report Crypto Outlook. It says that “the process of replacing gold in wallets by bitcoin is accelerating.”
The document distinguished 2020 as a breakthrough year for institutional investors and corporations. The cryptocurrency “gained legitimacy with declining volatility compared to the opposite in most assets.”
The situation also escalated in 2021 as “old guard gold allocators” focused on “careful diversification.”
Bitcoin flows are accelerating with the outflow of gold, and we see little reason to reverse this trend. Price ratio of potential global digital reserve asset vs. an ounce of old guard metal seems to be on the path towards 100x, after the 10x breach that has held resistance since 2017.
Earlier, analysts of the American international investment concern – JPMorgan, stated that the price of the metal may suffer in the coming years. Like Bloomberg’s strategists, they believe that this state of affairs is due to BTC taking market shares.
$ 100,000 – another target
The report goes on to explain that the current state of the original cryptocurrency shows that it has emerged from the realm of speculative risk assets and has become a “global digital storehouse of value.” Moreover, its role will only increase in the coming years as the whole world is moving towards digitization.
Given soaring institutional demand and halving every four years, Bloomberg predicts the next goal may be to enter six-figure territory – $ 100,000.