Bloomberg Analyst Mike McGlone: Nothing Will Stop Bitcoin Price From Appreciating
Bloomberg analyst Mike McGlone says he can’t see anything stopping the Bitcoin price from appreciating.
Discussing the macro economic environment, the gold market, and Bitcoin, McGlone said,
‘The key thing about Bitcoin is that I don’t see what’s going to stop it from doing what it has been doing for most of its life, and that’s appreciating.’
The Bloomberg analyst was speaking on Kiko News and drew on several factors to back up his argument. Citing the halving event, the state of the global economy, and BTC’s uncorrelation to other markets. McGlone believes it all pretty much guarantees the Bitcoin price will continue to ‘keep adding zeros.’
Bitcoin Price Keeps Adding Zeros
McGlone cited the Bitcoin price historical trend. Explaining how the leading cryptocurrency ‘has a history of adding zeros.’ Noting that he expects Bitcoin maturation and adoption will lead to a Bitcoin to USD $100,000 within five years.
‘The key thing it has been doing since it went to $100 and then to $1,000 and then $10,000, which has really been the consolidation price for the last three years, it just has a history of adding zeros,’ said Mike McGlone.
‘It took four years to reach the last zero, so the next zero should take eight years, but the key thing [people] need to realise about Bitcoin is supply is declining incrementally and will not be impacted by price. … So more adoption and more demand,’ will take the Bitcoin price to $100k in five years, said the Bloomberg analyst.
Macroeconomic Environment Helping Gold and Bitcoin
The state of the macroeconomic environment was adding to the likelihood of a gold and Bitcoin price appreciation, according to the Bloomberg analyst.
McGlone, the Bloomberg Intelligence’ senior commodity strategist, said as Bitcoin matures further it will begin to trade more like gold, and less like ‘risky’ stocks.
As Bitcoin matures it will include more adoption, lower volatility, and trading patterns that are more similar to that of gold.
The Bloomberg analyst pointed towards Bitcoin and gold’s correlation with one another this year, explaining how it had never been as high.
McGlone puts the correlation of gold and BTC down to the state of the global economy as investors look for an uncorrelated store of value to park their investment.
‘Bitcoin is following gold, gold’s made new highs,’ said Mike McGlone. ‘But its macroeconomic environment I think is quite significant: unprecedented debt to GDP, quantitative easing, negative rates, it makes things like gold and Bitcoin look attractive.’
McGlone also pointed out Bitcoin’s measure of risk and volatility had kept declining, whereas the stock markets had kept rising. And the Bloomberg analyst said if it continued it would attract a move away from ‘risky stocks’ to Bitcoin.
Mike McGlone: Bitcoin to USD $100k by 2025
Mike McGlone is a highly respected, veteran trader and analyst. Bloomberg’s senior commodity strategist is clear with his big picture outlook for the Bitcoin price, and can’t see anything stopping it rising.
His Bitcoin to USD $100k by 2025 is a more conservative prediction compared with other respected, macro strategists.
Timothy Peterson, who uses Metcalfe’s Law for his price prediction, believes we will see a Bitcoin to USD $1 million by 2028. At around $80k by 2025, however, Peterson’s model aligns closer to McGlone’s prediction.
There are many highly respected, macro strategists pointing to different future Bitcoin price valuations. Mike McGlone’s $100k prediction is an 800% rise, which in five years is still extremely bullish and more realistic to many Bitcoiners.
Will McGlone be right? Will Pal or Peterson be right? Who knows if they’ll get the timing spot on. One thing they all agree on, however, is the macroeconomic environment makes Bitcoin price appreciation inevitable.
Author: Tommy Limpitlaw