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# Bloomberg just released their cryptocurrency report and boy was it a doozy...

Perhaps Goldman Sachs hasn't come over to the crypto side just yet, but Bloomberg sure has.

They just released their crypto report and it was overwhelmingly positive on bitcoin and crypto.

The report can be seen here btw:

https://data.bloomberglp.com/professional/sites/10/Bloomberg-Indices-Outlook_Cryptos_June-2020.pdf

I won't go into all the details here as it is a rather lengthy research report with many slides, but I will touch on a few of the main points.

The big takeaway is that Bloomberg expects bitcoin to hit at least $20k this year and possibly go as high as $28k.

For those doing the math that is roughly 3x from where we are currently and we only have 6 months left in the year.

That kind of prediction would make even Tom Lee blush.

# Institutions are here...

One of the main drivers of bitcoin to $20k and beyond will be the arrival of institutions according to the report.

They are already showing up as Grayscale keeps putting our record quarter after record quarter, with the latest quarter possibly their best quarter ever. 

I touched on that briefly here:

https://hive.blog/hive-148441/@jrcornel/grayscale-now-consuming-more-btc-than-is-being-created-each-day

From the report:

> "So far this year, its increasing AUM has consumed about 25% of new Bitcoin-mined coins vs. less than 10% in 2019. Our graphic depicts the rapidly rising 30-day average of GBTC AUM near 340,000 in Bitcoin equivalents, about 2% of total supply. About two years ago, it accounted for 1%.”

Interestingly enough, the premium in GBTC has all but evaporated.

Which is something we saw at market bottoms in the past:

![image.png](https://cdn.steemitimages.com/DQmb4xa9gvr6dfv6dNZqnEoVdw7EvqAefZhvifC67LXU14b/image.png)

(Source: https://data.bloomberglp.com/professional/sites/10/Bloomberg-Indices-Outlook_Cryptos_June-2020.pdf)

Except in early 2017 as you can see on the chart above, which is where Bloomberg thinks we are in the price cycle.

On that point I would argue we are more likely in the of 2016 for comparison, but who am I to argue with Bloomberg. :)

# The coronavirus is accelerating the adoption and maturation of bitcoin as an asset class

Bitcoin was already well on its way to becoming a legitimate asset class, but the coronavirus and corresponding pandemic have only hurried that process along.

As the world goes more digital in the wake of the virus, bitcoin and crypto stand to benefit.

Cash on the other hand may see itself phased out, possibly entirely.

There is now roughly $10 billion sitting in tether, whereas last year at this time there was only $4 billion.

> “Interest in digital links to the dollar represents the need to transact and store value in the world's reserve currency without an intermediary. We can't help but draw parallels to the adoption of paper currencies throughout history as the world today moves rapidly toward digitization.”

That money already parked in tether represents possible dry powder should bitcoin start to accelerate again.

If you get a chance, check out the rest from the report, it's a very interesting read.

It's so nice to see major financial research firms doing reports like this on bitcoin and crypto instead of just dismissing it as a fad or scam like they did a couple years ago.

My how the times have changed.

Stay informed my friends.

-Doc