Bloomberg chief analyst Mike McGlone has reiterated his bullish six-digit price forecast for Bitcoin (BTC), arguing that the market-leading cryptocurrency is well on its way to becoming a reserve currency that is complementary to the US dollar.
McGlone made the corresponding forecast as part of the Bloomberg forecast report “Crypto Outlook”. Here he promised $ 100,000 for Bitcoin and $ 5,000 for Ether (ETH) after the two leading cryptocurrencies emerged stronger from a decline of more than 50 percent over the summer.
“The crypto market seems to be back on the uptrend again, although compared to the previous highs there were real bargain prices at the beginning of the second half of the year,” as the expert notes. He adds that portfolios that haven’t stocked up on BTC and ETH are downright “naked” in view of the relative weakness of gold and government bonds:
“Portfolios that are predominantly equipped with gold and government bonds are downright bare without Bitcoin and Ethereum. The only macroeconomic risk for the crypto market is currently that investors prefer to rely on risky investment products (e.g. stocks). “
Although six-digit price forecasts for Bitcoin are no longer uncommon, McGlone is giving the crypto currency a permanent place in the middle of the global financial system. “We are convinced that Bitcoin is the digital future,” as McGlone is optimistic in this regard. In this regard, he points out that the big competitor gold has also been able to gain more than 300 percent compared to comparable financial products since Richard Nixon lifted the gold standard in 1971. McGlone elaborates:
“We expect a future in which Bitcoin, as a digital reserve currency, will complement the reserve currency, the US dollar.”
Passionate Bitcoin fans have long argued that their favorite cryptocurrency will eventually become a global reserve currency. The background to this conviction is that they see Bitcoin’s monetary policy at an advantage over central bank money, because the latter is affected by inflation and thus loses more and more of its value. On the other hand, due to a limited supply, the cryptocurrency is deflationary, which makes it a kind of counter-draft in this aspect.
This added value, of Bitcoin as a store of value, is now also recognized by institutional investors, for example JPMorgan Chase and BlackRock have made investments themselves.
Yesterday, Friday, the Bitcoin price jumped back above the psychologically important mark of US $ 51,000, while the rest of the crypto market also climbed to heights of several months. The market capitalization of the asset class thus rises back to 2.4 trillion. US dollars, which is doubling compared to the 1.2 trillion. US dollar is from mid-July.