Bitcoin price predictions have been a hot topic for a while. Bloomberg analyst Mike McGlone believes the price of BTC, which hits $ 100,000, is pegged to the asset after Ethereum. This came in the Bloomberg Crypto Outlook monthly cryptocurrency newsletter. McGlone said so in the July version of the recently released newsletter.
McGlone commented on Ethereum’s performance, calling it the leading market leader since the bull market began. Ethereum has consistently outperformed BTC in the market for the past few years. But even as the coin continues to grow in popularity, BTC continues to take the lead. Bitcoin still boasts double the market cap of Ethereum and it doesn’t seem to stop there just yet.
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Bitcoin comes as a decentralized coin with innumerable merits. This adds up to the reasons why $ 100,000 isn’t an outrageous prediction of the price. In view of the massive attempt this year, it is impossible to predict where the next attempt will end up.
$ 100,000 is tame for Bitcoin
In the newsletter, McGlone highlights the potential of Bitcoin. To say that the $ 100,000 mark for the flagship cryptocurrency is still pretty tame. “Based on its history, one conclusion for BTC in 2021 is that the price spike through May 24 is a rounding error,” said McGlone. “The 2020 halving came amid unprecedented global fiscal and monetary stimulus, along with institutions focused on Bitcoin allocations.”
As he went on, he highlighted the possibilities that BTC could become an important reserve of value for the financial markets as a whole. Bitcoin has undoubtedly shown tremendous promise in its ability to be a store of value for both individuals and institutions.
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Talking about it, said the Bloomberg analyst; “The chance that crypto will become a digital reserve and hold the course it has pursued over the past ten years increasingly outweighs the loss of a small part of a portfolio.”
As BTC grows stronger, greener (courtesy of China’s mining operations), and less expanded, this proves to be a likely path towards $ 100,000. The newsletter cited that the April asset correction was due to excessive energy consumption, and this shows the strength of Bitcoin, the world’s largest decentralized network. This confirms that China’s actions in crypto mining have only shown the benefits of BTC, and now miners have their sights set on using renewable energy for their mining operations.
Strong foundation in 2021
Bitcoin has shown a strong and solid foundation so far in 2021. This is one of the reasons the coin price held up so well despite having lost over 50% of its value in a few months.
Using Bitcoin’s history so far, McGlone said in the newsletter that this story suggests that the digital asset is moving up quite sharply in 2021. And the data on the charts seems to back it up.
The declining supply of Bitcoin is also a big factor in this price surge, which is emerging on the charts. Bitcoin’s scarcity model ensures that the coins are more valuable than ever with every BTC mined. With an upper limit of 21 million, there will be no more BTC as soon as the last BTC is mined.
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With institutional players entering the market and buying up large numbers of coins at the same time, the time when demand will be higher than supply is fast approaching. Coins bought and placed in wallets mean fewer coins are available to buyers and traders.
Halving, which happens every four years, adds to this already charged BTC train. Halves are when the rewards for BTC mining are cut in half. The last halving in 2020 left bitcoin mining rewards at 6.25 per block. By the next halving in 2024, the Bitcoin reward per block will be 3.125.
A combination of these factors could just be the push BTC needs to finally crack $ 100,000.
Featured image from Inverse, chart from TradingView.com
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