Bloomberg saw the connection between USDT capitalization and demand for CBDC


Bloomberg analysts believe that the growth in capitalization of the stablecoin USDT and other versions of the digital dollar indicates that there is a demand for CBDC in the market.

The growth in the capitalization of the stablecoin tether (USDT) indicates a high demand for the digital version of the dollar. This opinion was expressed by analysts of Bloomberg in a monthly report.

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According to them, a tenfold increase in the capitalization of USDT, even despite litigation with US regulators, indicates a high demand for the digital version of central banks (CBDC), namely the digital dollar.

Growth of trading volume in USDT stablecoin. Source: bloomberg.com

Analysts believe that USDT capitalization will continue to grow. As with the development of the Internet, progress will accelerate with increased regulation, they note.

Bloomberg also believes that despite the reduction in the share of the United States in world GDP, the globalization of the dollar will intensify as the crypto market develops.

Bitcoin will reach new heights

Bloomberg experts also gave a forecast for the value of bitcoin. According to their calculations, the cryptocurrency could grow to $ 400,000 by the end of the year, if it retains the previous patterns by analogy with 2013 and 2017.

Historical correlation of Bitcoin highs after halving. Source: bloomberg.com

Experts have noticed that Bitcoin is growing all the time in the first year after the halving. If history repeats itself, then we will see new records in 2021. Key support is currently in the $ 44,000 area.

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This is not the first bullish outlook for Bitcoin from Bloomberg analysts. In early February, experts found out that the volatility of bitcoin can increase the gap between the price of cryptocurrency and gold by hundreds of times.

In this case, the value of the cryptocurrency may rise to the level of ~ $ 173 thousand (at a gold price of $ 1739 per ounce).

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Karice Dabule

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