Mike McGlone, Bloomberg’s Senior Commodity Strategist, believes that bitcoin appears as a better investment opportunity than gold as of January 2021. The intelligence analyst said that it’s more likely BTC to reach $50,000 per coin than retrace to the old highs of about $20,000.
Bitcoin Better Than Gold?
Bloomberg’s strategist is among the few mainstream analysts that had remained bullish on BTC even when cryptocurrency was struggling during the year-long bear market in 2018. When the asset has been running high, though, he has remained relatively modest with his positive predictions.
Back in November last year, McGlone correctly forecasted that BTC would break through $20,000 for the first time. In fact, he saw it just as a stepping stone on the path to a market cap of $1 trillion.
While his macro forecast envisions bitcoin reaching $100,000 per coin by 2025, his more short-term views see BTC tapping $50,000 following the mainly bullish sentiment in the past several months.
McGlone said that reaching the $50k milestone is significantly more likely, rather than the alternative of dipping to the previous BTC records of around $20,000.
As such, he noted that “bitcoin may be better than gold.” It’s worth noting that the cryptocurrency outperformed the yellow metal during the challenging 2020. The bullion, regarded as a safe haven asset that should perform best in times of uncertainty, increased by 25% last year, while BTC’s gains were above 300%.
Bitcoin Price Cycles. Source: Bloomberg
Is BTC Indeed Heading Towards $50K?
While the community has become accustomed to numerous optimistic, or downright outrageous in some cases, predictions on BTC’s price, $50,000 sounds rather modest as of now.
The primary cryptocurrency has been on a tear since early October when it struggled to maintain within a five-digit price territory. However, whether it is effects from the 2020 halving, following the popular stock-to-flow model, the increased demand from institutions, or, most likely, all of the above, bitcoin has charted massive gains and consecutive all-time highs.
Earlier today, the cryptocurrency attained another record of about $38,500. In other words, BTC needs an additional increase of 30% to reach the coveted price tag. Although 30% is not a small task, bitcoin has already proven many times its capabilities to paint similar impressive performances, sometimes in just days.
Title: Bitcoin Price More Likely to Hit $50K Than $20K: Senior Bloomberg Strategist
Sourced From: cryptopotato.com/bitcoin-price-more-likely-to-hit-50k-than-20k-senior-bloomberg-strategist/
Published Date: Thu, 07 Jan 2021 16:32:08 +0000