Bloomberg Intelligence has released its June Crypto Outlook report, forecasting that Bitcoin could reach its all-time high of $20,000 this year, with a potential upside to $28,000. According to the report, “something has to really go wrong for bitcoin not to appreciate in value,” given the current macroeconomic environment fueled by massive quantitative easing and the COVID-19 pandemic.
QE and COVID-19: Accelerating Bitcoin's Maturity
The report emphasizes that the pandemic is hastening the shift away from paper money while stimulating unprecedented levels of central bank money printing. Both gold and bitcoin are benefiting as independent stores of value. “Covid-19 is hastening the shift away from paper money and stimulating plenty of quantitative easing, which is helping independent stores-of-value such as gold and bitcoin,” it notes. Last year’s high of about $14,000 could nearly double in 2020 if Bitcoin rotates within its recent price bands, the report adds.
Post-Halving Performance
Since Bitcoin's block reward halving on May 12, the cryptocurrency has twice breached the $10,000 level but struggled to hold above it as investors quickly took profits. A flash rally to $10,400 on June 1 was followed by a 17% crash within a day. At press time, Bitcoin is trading at $9,549, up roughly 33% year-to-date, but down 0.5% over the last 24 hours. Bloomberg describes the current state as a “resting bull,” suggesting the upward trend remains intact.
Institutional Interest and Grayscale's Dominance
The report highlights a surge in institutional interest, specifically citing Grayscale Investments. Grayscale Bitcoin Trust absorbed 25% of all newly mined Bitcoin in 2020, managing over 340,000 BTC ($3.25 billion) on behalf of investors. This makes it the largest crypto-asset exchange-traded instrument and a key driver of institutional adoption. The Fund’s aggressive acquisition reduces available supply, supporting price appreciation.
Active Addresses and Futures Market
Bloomberg points to Bitcoin active addresses reaching a two-year high of 891,000 in 2020, indicating growing network adoption. “Unless advancing addresses abruptly reverse, history indicates bitcoin has a propensity to appreciate,” the report states.
The futures market, while representing just 50,000 BTC in open interest, is viewed as a critical gateway for Bitcoin to transition into a mainstream asset class. “Maturation, greater depth, and plenty more exposure via futures should continue to suppress the first-born crypto’s volatility, clearly keeping it tilted toward price appreciation,” Bloomberg concludes.
Bloomberg’s bullish outlook adds to the growing optimism in the crypto space, though short-term volatility remains a concern. What do you think about this price prediction? Share your thoughts in the comments below.