According to the research department of Bloomberg Intelligence, despite the collapse in March 2020, bitcoin gained a stable position in the market amid the global recession. And many experts have even started calling Bitcoin digital gold.
Experts say that the coronavirus for Bitcoin had a positive macroeconomic effect. Bloomberg analysts noted that Bitcoin has every chance of moving from risky speculative assets to the position of digital gold. In addition, in their opinion, the volatility of the stock market will only increase over time, and bitcoin will get out of the position of a risky asset. The decline in cryptocurrency in 2020 was only 5%, compared to 22% for the stock index. According to experts, cryptocurrencies that are just in their infancy can successfully go to gold status, becoming mature and gaining high performance.
The price is influenced by the issue
Bloomberg believes that the growing interest in bitcoin futures is more “mainstream adoption” and that this will affect cryptocurrency changes while prices rise. And since bitcoin is still presented in a limited supply, this has an impact on supply and demand, which in turn determines its price. In addition, according to Bloomberg forecasts, commercial banks will have a key role in the spread of digital currencies of central banks (CBDC).
Fed needs to move
The economic downturn in the future could provoke the Fed’s interest to provide direct incentives beyond existing financial markets. But, according to experts Bloomberg will have to amend the legislation.
Central banks around the world will need to adjust their CBDC development strategies. And if Bitcoin was able to survive all the difficulties caused by the coronavirus pandemic, the Fed needs to be more flexible with regards to regulated private digital money.