Bloomberg: A key indicator indicates that the price of Bitcoin will exceed $12,000
Bloomberg’s mid-year report pointed out that the price of Bitcoin (BTC) may soon exceed $12,000.
Active addresses keep increasing
This report believes that both on-chain and off-chain indicators of Bitcoin indicate that Bitcoin will appreciate. One of Bloomberg’s key indicators is the number of active addresses. Bloomberg explained:
“According to Bloomberg’s pricing, the highest price of Bitcoin at the close in 2019 was $12,734. Unless the number of current addresses suddenly reverses, history shows that Bitcoin may tend to this price level.”
Gray dynamics are positive
Bloomberg believes that the continued growth of the Grayscale Bitcoin Trust Fund (GBTC) and the shrinking of the premium relative to the Bitcoin spot market should also be interpreted as a positive for the market:
“According to an average of 30 days, the underlying net asset value of the Bitcoin Trust Fund has a 20% premium, compared to the historical average of 39%.”
However, we should note that the growth of GBTC has stalled recently.
The report pointed out that the Office of the Comptroller of the Currency recently decided to allow Bank of America to provide custody of digital assets, which should clear the last obstacle for institutional investors. Nonetheless, the report pointed out that Bitcoin’s breakthrough of the $10,000 mark (the report may have been compiled last week) is critical to maintaining this momentum.
Although Bloomberg is still optimistic about Bitcoin, its optimism seems to be declining. In late June, Bloomberg hinted that Bitcoin was facing resistance of 13,000 US dollars, and in early June predicted that Bitcoin would soar to more than 20,000 US dollars.