Bitcoin’s post-halving bull run is “tame” compared to previous cycles, according to new analysis from Bloomberg.
In the May issue of the Bloomberg Crypto Outlook monthly newsletter, senior commodity strategist Mike McGlone argues Bitcoin’s increasing clout and presence in the mainstream has put the leading cryptocurrency on a more subdued path.
Nevertheless, the analyst predicts that the flagship cryptocurrency is set to push higher.
“Bitcoin at about double in 2021 to May 4th is tame if post-supply cut years are a guide. What’s different this time is the crypto’s transition into the mainstream, which should result in a more subdued path.
We may look back at 2021 as a price-adjustment period to a higher, more sustainable plateau.”
Per the newsletter, if Bitcoin’s price catches up to the pace of 2017, the leading cryptocurrency by market cap will hit at least six-figures this year.
“The 15x price gain in 2017 was about one-third of 2013’s advance.
A similar fraction of the 2017 surge would translate to a price just above $100,000 in 2021, and other than Bitcoin’s continued maturation, conditions aren’t much different now.”
Bloomberg says key factors that could propel Bitcoin higher include the entry of institutional investors and loose monetary policies being pursued by central banks around the world.
“Supply is shrinking and demand is rising. Unlike speculative rallies in the past, the risk for traditional investors has tilted toward failing to allocate some assets to Bitcoin…
Diminishing supply juxtaposed with historically low interest rates and the substantial amount of money being pumped into the system form a solid foundation for price appreciation of the firstborn crypto, if the rules of economics apply.”
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