In the recent latest report from the Bloomberg reveals that the company is expecting that the Bitcoin (BTC) will approach record high of about $20,000 at the end of this year and it can reach as high as $28,000.
HOW COVID-19 & INSTITUTIONS ARE HELPING BITCOIN
According to the report presented by the Bloomberg, COVID-19 shows positive impact on Bitcoin as it has accelerated BTCs maturity as an asset and many of the institutional investors are looking towards the bitcoin as an strong investment option. GBTC consuming about 25% of new supply :
Quoted as it is :
"So far this year, it's increasing AUM has consumed about 25% of new bitcoin-mined coins Vs less than 10% in 2019. Our graphic depicts the rapidly raising 30-day average of GBTC AUM near 340,000 Bitcoin equivalents, about 2% of total supply. About 2 years ago, it was accounted to 1%."
Narrowing GBTC/BTC
Bloomberg report explains the narrowing of the GBTC/BTC premium, which is a sign that refers to the incremental growth in the Bitcoin in near future. Another thing I like mention specifically from the Bloomberg report, they said "something needs to go really wrong" for Bitcoin not to increase in value. This means, there are very strong signals to buy bitcoin at this moment. Quoting Bloomberg report :
"The steadily declining premium in GBTC despite strong inflows indicates supply being taken off the market, and maturation. On a 30-day average basis, the Trust's 20% premium over its underlying net asset value compares with the historical mean of 39%."
You can Go through the DATA provided by the BLOOMBERG : BLOOMBERG REPORT