Mike McGlone, a senior commodity strategist for Bloomberg Intelligence, believes the price of Bitcoin could shoot past the price of an ounce of gold – by around 100 times.
In the July 2021 edition of the monthly cryptocurrency newsletter Bloomberg Crypto Outlook, McGlone says that based on technical analysis, the flagship crypto asset could keep appreciating relative to the coveted metal.
“Bitcoin may be more than a digital version of gold. A potential path for the Bitcoin price is to stabilize around 100x an ounce of gold and for volatility to resume its downward trajectory, if past patterns repeat.
Our graphic depicts a good reason the crypto price could keep advancing relative to the metal, as 260-day Bitcoin volatility appears in early recovery from reaching the lowest ever vs. gold in December.
At the end of 2016, this relative risk measure formed a similar bottom, as the Bitcoin-to-gold ratio breached 1x resistance on the way to 10x in 2017.”
One ounce of gold is currently trading at slightly over $1,800.
Bloomberg Crypto Outlook further states that the second half of 2021 will be different for the cryptocurrency market compared to the first half.
“The crypto market is likely entering a more adult stage in 2H, and we see Bitcoin regaining luster.
Excesses of 1H, as exemplified by Dogecoin, have been alleviated, and the mainstream migration trend appears quite strong, especially if exchange-traded funds in Canada and the elongated waiting list in the U.S. are a guide.”
The monthly newsletter adds that the growing adoption of Ethereum is a bullish sign that the second-largest crypto asset by market cap could follow Bitcoin’s 2017 trajectory going forward.
“The go-to platform for cryptos and decentralized finance – Ethereum – appears at a discount within a bull market and could consolidate for a while at $2,000-$4,000. Looking like Bitcoin in 2017, Ethereum has flushed out excessive speculation, while increases in addresses used reflect the accelerating digitalization of money…
Akin to Ethereum at the start of this year, the [sic] Bitcoin began 2017 around $1,000 and peaked just below $20,000. Ethereum could stay within the $2,000- $4,000 range since May roughly until October and maintain a 2017 Bitcoin-like flight plan.”
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