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Bloomberg predicts Bitcoin to $500k in this crypto supercycle

Bloomberg predicts Bitcoin to $500k in this crypto supercycle

The brief advance of Bitcoin (BTC) beyond $42,000 could mark the start of a burgeoning crypto supercycle, poised to propel the flagship cryptocurrency to surpass $500,000. Optimists claim this will start a complete financial change, captivating Wall Street’s attention and influence.

The cryptocurrency is experiencing an unexpected resurgence this year, surging by over 150% in 2023. Market observers eagerly anticipate the potential approval of a US-traded exchange-traded fund (ETF) directly holding the coin. 

This optimism has led Coinbase CEO Brian Armstrong, among others, to express that “Bitcoin could be the linchpin for extending western civilization.” Meanwhile, predictions about the coin’s future value vary widely, ranging from $50,000 in the short term to exceeding $530,000, as per a report from Bloomberg on December 4.

Factors that drive gains

We know from experience that a significant factor behind Bitcoin’s robust surge in 2020 and 2021 was the substantial influx of liquidity into the system during the pandemic. Without another actual liquidity program, projections of massive gains seem far-fetched.

The anticipation for a US-based Bitcoin ETF to address the liquidity issue has been prolonged, as the concept envisions providing money managers with a more convenient means to purchase it for investors. This convenience could open the door to billions of dollars in new crypto investments.

Another factor contributing to a broader crypto surge is X, the platform formerly recognized as Twitter. The platform is a hub for extensive crypto discussions.

However, Bitcoin has undergone numerous cycles of hype in recent years, with celebrations of gains persisting even as it still requires a 65% increase from current levels to reach its 2021 peak of approximately $69,000. Previous surges have concluded with declines, exemplified by a 64% drop in Bitcoin last year following a 60% gain in 2021.

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