In the past few days, the crypto market has gone haywire: Bitcoin became legal in El Salvador Means of payment approved, which initially caused some euphoria. Immediately afterwards, however, there was a huge correction that increased the crypto prices by up to 21 percent crashed. Recently, the price has at least stabilized somewhat, as data from Coinmarketcap show.
One of those Course corrections looks serene is Bloomberg chief analyst Mike McGlone. In a longer-term outlook, he predicts a golden time for cryptocurrencies. Bitcoin he sees on the way towards $ 100,000, Ethereum in the direction $ 5,000.
Hype or revolution?
Portfolios that contain a combination of gold and bonds but forego Bitcoin and Ethereum appear “increasingly naked,” according to McGlone. He sees it as likely that the crypto market will no longer drop below the lows of the 2nd quarter falls and rather expects new highs in the 2nd half of the year.
The Bloomberg chief analyst points out, however, that cryptocurrencies could only be “hype and speculation”. “It could just as well turn out to be one revolution trade in money and finance, “writes McGlone.” We tend towards the latter.
Bitcoin as digital gold
The question is why the trend of rising prices should weaken. Especially since there has just been a correction and the acceptance of cryptocurrencies is still increasing. For McGlone, Bitcoin is on the way to becoming a “digital gold“while Ethereum is the platform for digitized money could be.