Bloomberg is optimistic about Bitcoin price advancing beyond $12,000 in the near future on the strength of on-chain and off-chain indicators.
Bloomberg’s mid-year report indicates that the price of Bitcoin (BTC) could soon rise above $12,000.
Active addresses on the rise
The report contends that both on-chain and off-chain indicators for Bitcoin point to the asset’s appreciation. One of the key metrics for Bloomberg is the number of active addresses. Bloomberg elaborated:
“The 2019 Bitcoin end-of-day high was $12,734, based on Bloomberg pricing. Unless advancing addresses abruptly reverse, history suggests Bitcoin may gravitate toward that level.”
Grayscale’s dynamics are positive
Bloomberg suggests that the continuous growth of Grayscale’s Bitcoin Trust or GBTC and the shrinkage of the premium versus the Bitcoin spot market should also be interpreted as bullish for the market:
“On a 30-day-average basis, the Trust’s 20% premium to its underlying net asset value compares with the historical mean of 39%.”
Though we should note that lately, the growth of GBTC has stagnated.
The report states that the recent decision by the U.S. Office of the Comptroller of the Currency to allow the U.S. banks to provide custody for digital assets should clear the last hurdle for institutional investors. Nonetheless, it notes that it is essential for Bitcoin to breach the $10,000 plateau (likely the report was compiled last week) to sustain this momentum.
Although Bloomberg remains optimistic about Bitcoin, its level of optimism is seemingly diminishing. In late June the publication was suggesting that Bitcoin was eyeing the $13,000 resistance; and in early June, it was prognosing it to soar above $20,000.