The research team at Bloomberg has released the July 2020 Crypto outlook report.
The report explains that the number of active Bitcoin addresses points to demand that could push BTC to $12,000 in the near future.
Furthermore, Bitcoin as an asset seems to be maturing based on the rising CME futures open interest.
Every month, the research analysts at Bloomberg release their highly informative Crypto Outlook report. The July edition was released yesterday, July 2nd and it highlights the growing demand for Bitcoin by investors and traders. By using the famous law of supply and demand, the report explains that an increase in Bitcoin addresses currently being used points towards a BTC price of $12,000.
The number of active Bitcoin addresses used, a key signal of the 2018 price decline and 2019 recovery, suggests a value closer to $12,000, based on historical patterns.
Reflecting greater adoption, the 30-day average of unique addresses from Coinmetrics has breached last year’s peak. In 2019, when this metric exceeded the previous high, it preceded Bitcoin’s recovery from the depths of a bear market. Our graphic [below] shows addresses consolidating near the highest level since February 2018, and the relative discount in Bitcoin.
The 2019 Bitcoin end-of-day high was $12,734, based on Bloomberg pricing. Unless advancing addresses abruptly reverse, history suggests Bitcoin may gravitate toward that level.
Bitcoin is Maturing With the Rise of CME Bitcoin Futures Open Interest
Furthermore, July’s Bloomberg Crypto Outlook report indicated that the continual rise of the CME futures open interest is a confirmation that Bitcoin is maturing. These futures contracts and their corresponding open interest illustrate that Bitcoin is ‘joining the mainstream’ through the trading of Bitcoin derivatives on U.S regulated exchanges. Confidence in BTC continues to grow despite the SEC continuing to postpone or reject the approval of Bitcoin ETFs.