Senior Commodity Strategist of Bloomberg, Mike McGlone projects that Bitcoin is likely to rise to $100,000 this year followed by a deeper correction last seen back in 2017 highs.
Bitcoin Price Could Reach $100,000 This Year
In its latest June edition of the Bloomberg Galaxy Crypto Index report, Bloomberg strategist, Mike McGlone has predicted that Bitcoin price could hit $100,000 this year followed by retracing back to $20,000.
“About $40,000 may be the Bitcoin cap a while within what we see as a resting crypto-asset bull market. No. 2 Ethereum is rapidly moving toward No. 1 market-cap status and has been a top driver of the Bloomberg Galaxy Crypto Index in 2021. Bitcoin is more likely to resume appreciating toward $100,000 resistance rather than sustaining below $20,000,” the report added.
The analyst further noted that last year, Bitcoin’s 260-day volatility dropped to its lowest rate ever compared to major asset classes, including the S&P 500:
“In 2020, 260-day volatility dropped to its lowest ever vs. most major asset classes, notably the S&P 500. Add last year’s supply cut, the migration to institutional portfolios, Ethereum futures, and the launch of ETFs in Canada and Europe, and we see greater potential for Bitcoin to head toward $100,000 than sustain below $20,000.”
Bloomberg analyst Mike McGlone initially revealed on Bitcoin hitting $100,000 last month in his social media with the recent crypto market crash saw the cryptocurrency’s price drop for “reasons that support an extended bull market” to eventually hit six figures this year.
#Bitcoin has backed up for reasons that support an extended bull market and a path to $100K. A bit hot in April, a primary factor cited for the crypto’s correction — excessive energy use — represents the strength of the world’s largest decentralized network, and getting greener pic.twitter.com/l6STK94ZNO
— Mike McGlone (@mikemcglone11) May 25, 2021
Ethereum Could Overtake Bitcoin
The report also highlighted Ethereum’s growing importance in the crypto space and that it could eventually overtake Bitcoin in terms of market capitalization, given that “the trend that appears enduring is Ethereum gaining market share vs. Bitcoin.”
In addition to Bitcoin and Ethereum, the report also highlighted the third biggest crypto by market cap, Tether with its growth reflecting “the digitalization of money,” amid the U.S. dollar maintaining dominance over other traditional currencies.