Widely followed Bloomberg Intelligence commodity analyst Mike McGlone says the path of least resistance for Bitcoin is upward past $100,000.
In a new report, McGlone says now that the crypto markets have survived a devastating correction, they should be ready to resume a macro trend upward.
“After enduring a gut-wrenching correction, we see the crypto market more likely to resume its upward trajectory than drop below the 2Q lows. What could stop Bitcoin and Ethereum from achieving record highs in 2H (second half) may be the more elusive question. Increasing demand and adoption are facing diminishing supply…
The crypto market may be just hype and speculation, or it could be a revolution in money and finance that’s in early price discovery days. Our bias is with the latter. Why complicate an enduring trend, notably in the aftermath of a sharp correction and with adoption still growing, as evidenced by a plethora of news stories?”
According to McGlone, Bloomberg’s data shows that an index consisting of Bitcoin, gold and bonds has been outperforming the S&P500 ever since 2015, closely following the expansion of the G4 central banks’ balance sheet.
“Our graphic depicts the Bitcoin-Gold-Bond index outperforming the S&P 500 since the end of 2015, notably from the start of 2020, along with the rapidly rising level of G4 central-bank balance sheets.
Bitcoin is helping to bank the unbanked, and the primary up-and-coming country, China, doesn’t permit the free flow of capital or discourse.”
McGlone adds that he sees defensive sections of investment portfolios as being more and more vulnerable without the addition of BTC and ETH.
“We see Ethereum on course toward $5,000 and $100,000 for Bitcoin. Portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix.”
You can read the full Bloomberg Intelligence report here.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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