In other developments, a Finder panel of 55 fintech and crypto specialists has projected that Bitcoin will be worth $21,344 by the end of 2022 — skyrocketing to $79,193 by 2025.
Listen to the CoinMarketRecap podcast on Apple Podcasts, Spotify and Google Podcasts
It may be "a matter of time" before Bitcoin starts outperforming most asset classes once again, according to a new report from Bloomberg Intelligence.
Senior commodity strategist Mike McGlone says the benchmark cryptocurrency is "gaining value as a unique alternative asset and global collateral that's no one's liability or responsibility."
McGlone — who has long been a bullish voice when it comes to Bitcoin — admitted that the current economic climate has been challenging. However, he added:
"It makes sense for one of the best-performing assets of the past decade to drop with the most aggressive Federal Reserve tightening in about 40 years, but rising demand and adoption, declining supply and a steep relative price discount point to risk/reward leaning favorably."
He went on to argue that Bitcoin is now showing signs of achieving a bear market bottom as the world's biggest cryptocurrency manages to resist a meaningful fall below $19,000 — despite the headwinds currently facing the global economy.
"The fact that the benchmark crypto hasn't dropped along with the latest round of rate hike expectations may also signal a Fed end game on the horizon. A top potential catalyst for central banks to curtail tightening is for markets, notably stocks and commodities, to do it for them, which may favor Bitcoin."
Overall, McGlone believes that Bitcoin "may be in the early days of shifting to trade more like bonds and gold" — marking an end of the current era where it has been closely correlated to tech stocks.
On the adoption front, he added:
"Bitcoin may be entering an inexorable phase of its migration into the mainstream, and at a relatively discounted price. The Financial Accounting Standards Board's recent decision that companies should use fair-value accounting for measuring cryptoassets is part of what we see as the US embracing cryptos with proper regulation."
With a fixed total supply of 21 million coins, McGlone's view is that a bullish forecast for Bitcoin amounts to straightforward economics.
"Bitcoin's definable diminishing supply is unprecedented on a global scale, and so prices should continue to rise over time unless something unlikely happens to reverse demand and adoption trends, given the laws of supply and demand. Bumps in the road should be expected, but we think the upward price trajectory will prevail."
McGlone also pointed to the fact that just 900 BTC a day is entering the market between now and 2024, which is when new supply will be halved once again to 450. With about 90% already mined, he explained:
"Newly created Bitcoin will decline to about 0.8% of the amount outstanding in 2025, which means the price is likely to rise unless demand and adoption decline. Maturation and adoption are gaining momentum, and we expect those to help buoy the price."
In other developments, a Finder panel of 55 fintech and crypto specialists has projected that Bitcoin will be worth $21,344 by the end of 2022 — skyrocketing to $79,193 by 2025.
Most experts still regard Bitcoin as a store of value, but some have admitted that the world's biggest cryptocurrency "has proven less of an escape for inflation" than anticipated. A further 56% argue that BTC is underpriced at current levels.
Interestingly, the majority of those polled believe that Ether will eventually become the world's biggest cryptocurrency by market cap — an event that's long been referred to as "the flippening."
