Bullish Bloomberg on Bitcoin despite Thanksgiving Crash

Bloomberg praises Bitcoin’s market depth and liquidity, agreeing that current conditions are far better than 2017

Bitcoin (BTC) continues to convert many of its most avid detractors, often from the world of traditional finance. This time it’s Bloomberg who changes his mind, admitting that this bull run looks nothing like the 2017 one.

In an article published on 27 November, the publication known for its pessimism highlighted a number of Bitcoin-related parameters pointing to a bullish future, despite Thursday’s $3,000 collapse.

Bloomberg: Bitcoin’s market is „much more liquid“.
Evidence includes open interest at record levels in Bitcoin futures, non-zero wallet numbers, hash rate and lack of correlation between BTC and other macro assets

„Just look at the technical factors in the market and Wall Street’s growing adoption of the world’s largest digital currency,“ the article begins.

„And while trading is not always smooth, the $315 billion digital currency is much deeper and far more liquid than its last boom in 2017.
Bloomberg mentioned people described as „diehard crypto,“ who reject the idea that current price increases are another bubble. Among them was a regular Cointelegraph employee, Mati Greenspan.

„Things have changed,“ he commented.

„The last time we saw Bitcoin go this high, the blockchain was on the verge of collapsing, but the network has improved significantly since then.
Meanwhile, a separate interview for Bloomberg TV involved Friday Antoni Trenchev, CEO of the Nexo crypto loan platform, who predicted Bitcoin will reach a new all-time high by the end of 2020, he added:

„The narrative of digital gold is stronger than ever. If Bitcoin captures only 10% of the total gold market cap, we will reach $50,000 in no time“.
Bloomberg highlights the open interest of futures on Bitcoin among its bullish signals
Bloomberg highlights the open interest of futures on Bitcoin among its bullish signals. Source: Bloomberg
BTC’s macro performance annihilates gold
The lack of criticism within the article reflects Bitcoin’s growing approval as a real asset, regardless of whether the interest in investing comes from retail circles or institutional players.

Part of the positive image of cryptocurrency comes from its new eight-month sustained growth following the March collapse, during which it consistently outperformed other macro assets. Even after its withdrawal at $17,000, Bitcoin’s returns from the beginning of the year to date amount to 135%, compared to 19% for gold and 12% for the S&P 500, as confirmed by data from the analysis resource Skew.

In the case of gold, Mike McGlone, the chief strategist of Bloomberg Intelligence who has long been fully bullish on Bitcoin, believes that in the future institutions will continue to pile up in cryptocurrency.

„Is Bitcoin replacing gold? Futures and capital flows say yes – The increase in open interest in futures and investor inflows into Bitcoin compared to the decline for gold indicates, in our opinion, that cryptocurrency is gaining an appreciation advantage,“ he tweeted earlier this week.

A few days later, McGlone added that gold is likely to see a recovery over the coming year, with the precious metal „tilting favorably“ towards the $2,000 recovery.

„The contraction to support levels towards the end of November should provide a basis for further increases in gold,“ he explained on Friday.