Mike McGlone, a senior commodity strategist for Bloomberg Intelligence, says Bitcoin (BTC) appears to be heading to $100,000 as it edges closer to replacing gold as a reserve asset.
In a new edition of the Bloomberg Crypto Outlook, McGlone writes that the Grayscale Bitcoin Trust (GBTC), which closed at a 2.7% discount at the end of February, signals that the king coin’s value could be preparing for a two-fold increase.
The analyst suggests that GBTC’s price drop, along with CME-traded BTC futures trading significantly higher, suggests the world’s leading cryptocurrency has formed a solid price foundation.
“Bitcoin’s end of February price disparities on U.S. regulated exchanges portend a firming price foundation, if history is a guide, and are evidence of just how nascent the crypto is. Indicating capitulation selling, the Grayscale Bitcoin Trust closed at its steepest discount ever, while December CME-traded Bitcoin futures settled about 20% higher.”
McGlone goes on to say the top cryptocurrency appears to be in the process of replacing gold as a growing number of investors now choose Bitcoin over the precious metal to diversify their portfolio.
He says the change in investment preference comes as Bitcoin undergoes a decline in volatility.
“Undistorted by price, we see the rising tide of Bitcoin adoption as simply prudent, notably for the gold allocators through history, increasing risk of the metal heading toward redundancy in a world quickly going digital…”
“Annual Bitcoin volatility will decline below that of Amazon.com in a few years, if past patterns prevail, we believe.”
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