Bitcoin is on the approach of restarting its bull-run, according to a new Bloomberg Intelligence (BI) study, with a big recovery expected.
Bitcoin is said to gain from the central bank’s asset purchase program, which may produce inflationary pressure, according to another source.
Before the latest Bitcoin bull run, which saw the price rise to a new all-time high of $65,000, the price plummeted to as low as $29,000. Despite the fact that Bitcoin is still battling to recover from a drop that saw it lose half of its value, analysts believe the bear market will not endure. Bitcoin is on the approach of restarting its bull-run, according to a new Bloomberg Intelligence (BI) study, with a big recovery forecast.
As crude oil is projected to enter a bear trend, which might have serious economic consequences, a large amount of money is expected to pour into crypto.
According to Bloomberg Intelligence, 470 barrels of crude currently equal one Bitcoin, which is similar to the 2016 exchange position, when the crude-to-Bitcoin ratio was at a three-year low before the subsequent bull-run of Bitcoin in late 2017 and early 2018, when the crude-to-Bitcoin ratio was at a three-year low before the subsequent bull-run of Bitcoin in late 2017 and early 2018.
According to BI, Bitcoin might follow a similar pattern through 2022 if the recent low in relative Bitcoin volatility is any indication. According to Bloomberg Intelligence commodity strategist Mike McGlone, the current trend clearly favors Bitcoin over petroleum in the second half of 2021.
If West Texas Intermediate crude oil reverts from seven-year highs at the start of July, bond yields are more likely to increase, which would be bullish for gold and Bitcoin as store-of-value assets. The term “pre-existing” has to be defined, as the odds appear to be stacked against crude oil repeating its downward trend after peaking in 2008.
Another aspect could be the central bank’s asset purchase program.
A modest catalyst, according to analysts, could induce reversion when there is a stretch in price against a more fundamental trend. Bitcoin has an advantage over crude oil because of its growing popularity and ever-dwindling supply. Bitcoin is also claimed to be gaining ground on petroleum as a result of increased digitalization and decarbonization.
Bitcoin is supposed to profit from the central bank’s asset purchase program, which may increase inflationary pressure and lead consumers to seek safe-haven assets, according to another article. The Fed’s accommodative balance sheet policy, according to financial analyst John Miller, will underpin asset prices and maintain increased liquidity. Only cryptos with significant store of value dynamics, such as Bitcoin, would prosper in this environment.
Alexey Veledinskii, product owner of Digitex, also believes that with increased inflation concerns, Bitcoin should hold $30,000 and rebound.
In the mid to long run, major support at $30,000 can easily be reversed with a comeback to more ambitious price ranges of $50,000 to $70,000.
Bitcoin Bull-run/n
