Can bitcoin reach 50000

Bitcoin Price Could Hit $50K in , Bloomberg Analysts Say

The path of least resistance for bitcoin is on the higher side, and the cryptocurrency could more than double from its current value in , according to Bloomberg analysts. 

&#;Bitcoin will maintain its propensity to advance in price into , in our view, with macroeconomic, technical and demand [versus] supply indicators supportive of $50, target resistance, implying about a $1 trillion market cap,&#; noted Bloomberg Crypto in a monthly report.

The demand-supply mechanics are currently skewed bullish, as only new coins mined each day compared with 1, in , and institutional participation is increasing. 

Notably, assets under management at Grayscale Bitcoin Trust recently breached the $10 billion level, having begun the year at $2 billion. The trust has bought nearly 70% of new bitcoins mined since May 11, when the cryptocurrency underwent its third reward halving. Grayscale is owned by Digital Currency Group, which is also the parent company of CoinDesk.

Open interest in the bitcoin futures listed on the Chicago Mercantile Exchange has risen above $1 billion for the first time on record compared with closer to $ million in , as per data source Skew. 

Bloomberg analysts said they expect these trends to continue in because major central banks and governments are unlikely to scale back or halt their inflation-boosting stimulus programs anytime soon. The unconventional policies adopted by authorities to counter the coronavirus-induced slowdown have boosted demand for bitcoin and gold this year. 

Past data also favors a rally to $50,, according to Bloomberg. &#;The advance followed a supply reduction to 1, coins a day, and similar occurred in ,&#; Bloomberg analysts noted.

History looks to be repeating itself. Bitcoin&#;s recent move to a new record high of $19, has happened roughly seven months following the May 11 reward halving. Similar price action had unfolded following the July supply reduction. 

Read more: Why Ethereum and Bitcoin Are Very Different Investments

While the odds appear stacked in favor of the bulls, the cryptocurrency remains vulnerable to a March-like panic sell-off in the global equity markets, according to Bloomberg analysts. However, they do not see prices falling below $10, 

&#;The $10, mark has shifted to a critical support level after serving as the crypto&#;s resistance mark since ,&#; the report says. 

Bitcoin fell sharply to $3, in March as global stock markets collapsed on fears of coronavirus-led recession, boosting demand for cash. Prices quickly recovered to $10, ahead of the May 11 reward halving.

The top cryptocurrency by market value reached a record high of $19, earlier this week, surpassing the previous all-time high of $19, reached in December Prices have more than doubled in the past three months alone.