In the latest crypto outlook research report by Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence (BI), Bloomberg’s research arm on the Bloomberg Terminal, the Bitcoin price could reach $55K in 2022.
According to the December 2020 edition of the “Bloomberg Crypto Outlook” report, which got released on Thursday (December 3), Bitcoin will “maintain its propensity to advance in price into 2021,” and that “macroeconomic, technical, and demand vs. supply indicators” suggest that in 2021 Bitcoin will be trading in the range $10,000–$50,000.
In the December 2020 report, McGlone says that Bitcoin is “on pace for $1 trillion in about 2022, implying a price around $55,000,” and that it could “reach $40,000 in 2021.”
He goes on to say that “there’s little to trip up the Bitcoin bull market in 2021, with most indications pointing to more of the same as 2020.”
On October 22, McGlone gave an interview, during which he explained why he expects the BTC price to reach $100K by 2025 and why gold is still worth buying despite Bitcoin’s greater upside potential.
McGlone’s comments about gold and Bitcoin during an interview with David Lin, Associate Producer for Kitco News.
McGlone started by talking about why he believes the Bitcoin price to reach $100,000 by 2025:
“The key thing about Bitcoin is 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 key thing it has been doing since it went to $100 and then $1000 and then $10,000, which is really been the consolidation price for the last three years, is it just has a history of adding zeros, and so if you add some maturity to that, which we should be because volatility is declining — it’s becoming more adopted — to get to the next zero, i.e. from $10,000… it should take probably… take eight years, but then I factor in all the other factors…”
As for Bitcoin’s correlation with gold, McGlone says that he expects this to continue:
“Yes, I think it’s enduring as Bitcoin becomes a more mature digital version of gold.
“Just look at the 12-month correlations… around 0.77, 52-week is around 0.5. The key fact is [that] it’s the highest ever. Now, Bitcoin is following gold, and gold’s made new highs, but it’s macroeconomic environment is, I think, quite significant, i.e. unprecedented debt to GDP [ratio], quantitative easing, negative rates… that makes things like gold and Bitcoin look attractive.”
Featured Image by “petre_barlea” via Pixabay.com
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
