Bloomberg Intelligence published today (04) its analysis of the crypto market indicating a future bullish trajectory for Bitcoin. According to analyst Mike McGlone, Bitcoin and Ethereum are assets that solidified support bases in June and July, and that threaten to resume the upward price trajectory, due to a macroeconomic risk elimination event.
According to senior commodities strategist at Bloomberg Intelligence, "the resurgence of deflationary forces indicated by declining yields on US Treasuries and major commodities adds support for gold and Bitcoin."
"This year is great for Bitcoin to take the next step in its price discovery stage and we see a renewed bull market," as speculative excesses have been scrapped according to analysts.
For Mike McGlone,
"Bitcoin is turning into digital gold in a world that follows this path, while Ethereum is the benchmark platform for digitizing money and finance."
The Bloomberg chart illustrates the consolidated trajectories of bond yields, which continue to decline, and the price of Bitcoin, which continues north.
“When opinions opposing long-term trends become consensual, the odds tend to lean towards long-term trajectories, which is the bullish outlook we see for Bitcoin and long-term US Treasuries early on. August, ”he said referring to Bitcoin's disruption in traditional financial markets. Hence the understanding that these two metrics are correlated.
He adds: "Negative returns in Japan and much of Europe are forces pulling the United States down and increasing the value of future digital reserve assets."
"Bitcoin and gold should follow the resumption of the upward trajectory of US Treasury prices in 2H", is what they believe.
Check out this month's full "Bloomberg Crypto Outlook" report.