In his recently published forecast report “Crypto Outlook”, Bloomberg chief analyst Mike McGlone is unimpressed by the massive corrections that the crypto market had to put up with after May.
McGlone sees Bitcoin and Ethereum massively on the upswing, Bitcoin even on the way to becoming a reserve currency complementary to the US dollar. For Bloomberg’s chief analyst, the forecast is clear:
“We see Ethereum heading for $ 5,000 and $ 100,000 for Bitcoin. Portfolios with a combination of gold and bonds appear increasingly bare with no Bitcoin and Ethereum in the mix. “
Price trigger: demand rises faster than supply
He gives investors the clear tip to consider Bitcoin and Ethereum in their portfolios. He sees cryptocurrencies emerging stronger from the “painful corrections” in the second quarter of 2021:
“After a painful correction, we see it as more likely that the crypto market will continue its uptrend than it will drop below the lows seen in Q2. What could keep Bitcoin and Ethereum from hitting new highs in the second half of the year is a difficult question to answer. Increasing demand and acceptance contrast with a shrinking supply … “
He admits that the crypto market could only be “hype and speculation”. But it could just as well be “a revolution in money and finance” “which is still in the early phase of pricing.” a still growing acceptance of it.
He sees another important influencing factor in the fact that cryptocurrencies can also reach those who have not yet had access to bank accounts. That would bring further growth to the financial market.
Bloomberg sees BTC and ETH as complementary
It is no coincidence that McGlone focuses on Bitcoin and Ethereum. In view of the fact that these are the two most valuable crypto currencies, this seems obvious, but it has only to do with it in the beginning.
McGlone sees the two assets in their combination. The “first-born cryptocurrency”, ie Bitcoin, is now accepted and in demand as a store of values. Ethereum has also embarked on this path with the London upgrade, but above all, as a driver of the entire defi-sector, it plays an important role for the financial markets of the future. The most likely development is therefore that both currencies would “simply stay the course” – and will continue to rise.
You can download the entire Crypto Outlook report from September 3, 2021 as a PDF here.
The momentum of the two currencies mentioned was weakened on Sunday. Bitcoin fluctuates around $ 50,000, ether just under $ 4,000. This means that the values stagnate around zero. The loser among the top 10 is Cardano with a 24-hour loss of 2.2 percent – everyone else fluctuates between -1 and +1 percent.
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