Bitcoin To Soar As High As $28,000 This Year: Bloomberg

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Bitcoin price could more than double this year to breach its record, and increase as high as $28,000, according to Bloomberg.

Its June Crypto Outlook report cites a slew of factors such as quantitative easing, the coronavirus pandemic, the falling stock market and crude oil as the reason for the meteoric rise.

The report says "something has to really go wrong for bitcoin not to appreciate in 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," according to the report.

In the opinion of the financial news outlet, 2020 is about increasingly favorable technical and fundamental underpinnings for Bitcoin, and less so for the broader crypto market.

"Last year, the high was about $14,000, which would translate into almost double in 2020 if rotating within the recent band, and mean little in the big picture," the report says.

The same forces buoying gold support Bitcoin, it added.

Bloomberg cites a possible repeat of 2016, when Bitcoin returned to its previous peak. "Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016's trend".

Although this year's market trend did not give an indication of such lofty increase in price, Bitcoin value doubled from $4944 in March to 9809 in June. the world's largest cryptocurrency by market capitalization is currently trading at $9675.

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