A report published by senior commodity strategist for Bloomberg Intelligence Mike McGlone has revealed the analyst believes bitcoin is “winning the adoption race” in the cryptocurrency space and could keep rising in 2020.
According to the report, there are two factors to take into account benefiting bitcoin: its fixed supply of 21 million BTC, and increasing adoption as a store-of-value asset. The analyst wrote BTC’s supply is set to increase only 2.5% this year, on its path to “zero growth.”
The report adds:
Our takeaway is straightforward: Bitcoin is winning the adoption race, notably as a store-of-value in an environment that favors independent quasi-currencies.
McGlone also predicted the flagship cryptocurrency’s volatility is set to keep on declining, expecting it to find support at the $6,000 mark, and to face resistance at $10,000. The analyst added, nevertheless, bitcoin is likely going to migrate towards its 2019 high close to $14,000, but won’t maintain that level for long.
For a third time, the analyst wrote, bitcoin may remain within the previous year’s range. This as a primary metric being used to measure demand for BTC, addresses being used, has stabilized “indicating similar for prices.”
As for other cryptocurrencies, McGlone wrote that there are “too many crypto-assets competing for adoption” which will keep market prices “biased to the downside.” For cryptoasset to appreciate in the future, he wrote, the rapidly rising supply of new coins will need to drop, as last year a total of 3,000 new cryptocurrencies entered the market.
Its graphics suggest, it adds, a stall in the supply of new coins at the end of 2018 coincided with a bottom on the MVIS CryptoCompare Digital Assets 100 Small-Cap Index, a market cap-weighted index tracking the performance of the 50 smallest digital assets in the MVIS CryptoCompare Digital Assets 100 Index.
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