Despite the recent downfall of the crypto market, the projection of Bitcoin (BTC) to cross the $100k threshold remains seen as a matter of time. Back in December, Bloomberg Intelligence indicated that the anticipated mark would happen eventually “due to the economic basics of increasing demand vs. decreasing supply,” and new data shed some light on that idea. Bitcoin Vs. Crude Oil In a new Bloomberg Intelligence report, data shows trends that could favor Bitcoin and Ethereum prices. The report noted that “Representing advancing technology, Bitcoin is gaining traction as a benchmark global digital asset, while oil is being replaced by decarbonization and electrification.” Lack of supply elasticity is an attribute shared by Bitcoin and Ethereum that “sets them apart from commodities”. For commodities, “rising prices thwart demand and increase supply”, but the top cryptocurrencies might tell a different story. “Increasing Bitcoin and Ethereum demand, and adoption vs. diminishing supply, should follow the basic rule of economics and raise prices.” In the following chart, Bloomberg shows a juxtaposition of the decreasing BTC and ETH supply along with the excess of crude oil and liquid-fuel production compared to consumption heading toward 13% in 2023, noting that the U.S. “has been a top headwind for commodity prices”. Related Reading | Why The Bitcoin At ...
