Bitcoin is gradually ceasing to be a speculative asset and is turning into a digital version of gold, analysts at Bloomberg said in their latest report. They cited a number of factors that favor the development of the digital money industry.
The first of these is a decrease in volatility. The fluctuations in the exchange rate of the main digital coin on the annual segment is getting weaker, while the same indicator in the stock market is growing, experts said. They clarified that the price of bitcoin since the beginning of the year fell by 5% against a decrease in the S&P 500 index by 22%. This reports on the maturation of BTC, as a new type of asset, and its recognition by investors as an analogue of gold, according to the publication.
Another factor analysts called an increase in the volume of trading in bitcoin futures. This helps to reduce the speculative component, experts stressed. They also noted the restoration of the rate of the first cryptocurrency after a two-year fall, which indicates its gradual recognition.
The publication added that Bitcoin is still highly dependent on the stock market. However, this correlation will decline in the future, experts suggested. In addition to this, they believe that BTC is becoming a less risky asset, as evidenced by a significant recovery in its price after the March decline of 45%.
“An increase in interest in futures and a decrease in volatility, despite the shock in the stock market, indicates that Bitcoin is being transformed from a speculative crypto asset into a digital version of gold,” summed up Bloomberg.
At the end of March, analysts at the Kraken exchange predicted that bitcoin would gain distribution in the future thanks to millennials. Over the next 25 years, the younger generation can invest about $ 1 trillion in the first cryptocurrency, which will lead to its rise in price to $ 350,000, experts suggested.