Bloomberg Analyst: Bitcoin Enters Bull Market Territory with Breakout
A Bloomberg crypto analyst believes that Bitcoin’s recent upward movement confirms that it has entered a bull market cycle. According to blockchain analyst Jamie Coutts, Bitcoin’s breakout is similar to a move in 2020 that paved the way for a significant uptrend.
Coutts explains that Bitcoin’s price action this week is equivalent to breaking above the $10,500 resistance level in July 2020. This breakout indicates that Bitcoin has cleared a major supply overhang, which is the largest in its history. Despite potential pullbacks, the price is confirming the bull market regime, as predicted by Coutts based on liquidity and market structure analysis since December 2022.
Massive Crypto User Growth Predicted
Coutts also predicts explosive growth in crypto user adoption by approximately 1,900% by 2028. This growth will be driven by stablecoin adoption, tokenization of real-world assets (RWAs), and the potential implementation of account abstraction. Traditional financial institutions that previously doubted the industry will be compelled to change their stance as they witness the realities of fiat finance becoming evident.
The analyst expects traditional finance companies to reverse course in 2024 as Bitcoin eyes becoming the next global reserve asset. Pensions and fund managers, who currently hold “risk-free” US Treasuries, will need to relearn risk management, diversification, and position size while grappling with the inescapable realities of fiat finance. Tokenization of real-world assets, account abstraction, and the rise of stablecoins are set to bring the number of daily crypto users from five to 10 million to 100 million by 2028.
Bitcoin’s Current Price
As of now, Bitcoin is valued at $34,764.
Hot Take: Bitcoin’s Bull Market Confirmed with Breakout
A Bloomberg crypto analyst has stated that Bitcoin’s recent breakout confirms that it has entered a bull market cycle. The analyst compared this breakout to a significant move in 2020 that marked the start of a major uptrend. The breakout indicates that Bitcoin has overcome a significant supply overhang, confirming the bull market regime predicted by the analyst based on liquidity and market structure analysis since December 2022. Additionally, the analyst predicts explosive growth in crypto user adoption driven by stablecoin adoption, tokenization of real-world assets, and the potential implementation of account abstraction. Traditional financial institutions are expected to change their stance as they witness the realities of fiat finance becoming evident.
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