Bear market by no means: Bloomberg report sees Bitcoin at USD 100,000
The crypto market is seeing red: Most of the top coins start the day with price losses. Only IOTA and Theta print dark green candles and continue their strong performance. Meanwhile, Bloomberg has published a bullish outlook for Bitcoin. The market update.
While the Bitcoin price continues to move on the south side of the US$50,000 mark, the rest of the crypto crowd is also posting price losses. Almost all of the top 20 coins start the day with a negative sign.
At the time of going to press, only IOTA and Theta can once again boast double-digit percentage gains. Both projects were recently able to come up with bullish news. On 4 March, for example, IOTA presented the alpha version and Bitcoin Freedom review of its smart contract solution ISCP, which could dramatically increase IOTA’s functionality and pave the way into the DeFi and NFT space.
At the time of writing, IOTA is trading at US$1.34, up around 12.5 percent from the previous day. Week-on-week, IOTA is up nearly 28 per cent. With a growth of 217 per cent, the monthly balance sheet should make many IOTA fans click their tongues.
Meanwhile, the news situation has also played into the THETA share price’s favour. The project recently announced the seventh external enterprise validator for the Theta network, Sony Europe. With this, the decentralised video streaming protocol has taken another step towards decentralisation. The THETA share price reached a new all-time high of USD 4.69 today, 5 March
Grayscale Bitcoin Trust slips into negative territory – bullish or bearish?
Meanwhile, Bitcoin has been unable to defend the USD 50,000 level it only recently reclaimed. At USD 47,340, the number 1 cryptocurrency has lost around 5 percentage points in a 24-hour comparison. This means that BTC is trading almost unchanged in a weekly comparison. However, there is no talk of a selling panic. A month ago, the bitcoin price was still below 40,000 US dollars. If one believes the analysis of Ki Young Ju, the head of the blockchain analysis firm Cryptoquant, Bitcoin is currently moving in a range that institutional investors have recently increasingly used to buy up.
The Grayscale Bitcoin Trust (GBTC) has proven to be a popular investment vehicle, especially for large investors who do not want to leave the trading floor in order to participate in the Bitcoin price. This is despite the fact that for a long time they had to pay a significant premium for Grayscale compared to the rest of the bitcoin market. Last December, the deviation from the market price reached its peak for the time being with a plus of almost 40 percent.
Bloomberg analyst: BTC forms bottom for 100,000-USD rally
But now the tide has turned. The GBTC premium turned into a discount at the end of February: For the first time in years, GBTC traded below bitcoin’s market price. This trend has intensified further in recent days. According to the analysis site YCharts, the discrepancy between GBTC and BTC is now -11.5 percent.
For Bloomberg analyst Mike McGlone, this is definitely a bullish signal. In the Crypto Market Outlook for the month of March, McGlone sees the Grayscale discount as a sign that Bitcoin has developed a price floor.
Sharp reductions in the GBTC premium often mark lows in bitcoin. The increasing likelihood of exchange-traded funds [Bitcoin ETF, ed.] in the US and the launch in Canada add pressure to the trust price, but we think a continuation of the uptrend is the more likely outcome.
If the bitcoin price has indeed reached a price bottom, then the stage is set for further growth, he says. McGlone goes so far as to establish the 100,000 US dollar mark as a price target. A scenario from which the altcoins should also profit.