Bloomberg’s senior commodity strategist Mike McGlone says Bitcoin may be on a path to six figures and beyond.
In a new interview with Bloomberg TV, the seasoned analyst assesses Bitcoin’s past performance and what it may indicate for the king coin’s price trajectory in 2021.
“Short term $20,000 is a pretty good resistance. I’m afraid it’s probably going to do what gold did: It got to $2,000 and then it’s been consolidating in the bull market ever since.
The key thing about Bitcoin this year is it just added a one to the front of the number. Remember it was around $7,000 at the end of last year… next year it could add a zero to the back of the [current price].”
By McGlone’s estimates Bitcoin may grow tenfold by the end of 2021, putting it at roughly $180,000.
McGlone goes on to highlight some of Bitcoin’s features that may indicate the largest coin by market cap is set to rise parabolically in the upcoming calendar year. He points out that Bitcoin’s volatility is decreasing, even against the traditional stock market.
“Bitcoin is becoming a digital version of gold. One key point that’s happening this year is Bitcoin volatility is declining. In fact it’s the lowest ever versus gold. 180 day volatility on Bitcoin versus the Nasdaq is actually below that of the Nasdaq. So every other risk asset on the planet’s volatility has been increasing. Bitcoin’s has been declining.”
McGlone says that whereas the last bull cycle was primarily fueled by retail fear of missing out (FOMO), this cycle could be fueled by a Wall Street equivalent.
“And what’s happening with QE (quantitative easing)? We all know there’s limited supply of Bitcoin… before it was retail fomo and now it’s becoming institutional fomo. Limited supply and demand is picking up and the macro is very positive.
Bitcoin moves with demand… Going forward all that matters is demand. Supply is limited. There’s only going to be 21 million.”
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