Bloomberg’s senior commodity strategist Mike McGlone has doubled down on name for six-figure Bitcoin (BTC), arguing that the first-born cryptocurrency is nicely on its option to changing into a world reserve asset that enhances the US greenback.
The September edition of Bloomberg’s Crypto Outlook referred to as $100,000 BTC and $5,000 Ether (ETH) the “path of least resistance” after the 2 property survived a more than 50% correction through the summer.
“Crypto-assets seem in a revived and refreshed bull market with the 2H good thing about a steep low cost from earlier highs at first,” wrote McGlone, referring to the second half of 2021. He stated portfolios missing BTC or ETH publicity are “bare,” as evidenced by the relative underperformance of gold and authorities bonds:
“Portfolios of some mixture of gold and bonds seem more and more bare with out some Bitcoin and Ethereum becoming a member of the combination. A macro risk-off decline is a major menace for the crypto bull market.”
Whereas predictions for six-figure Bitcoin are nothing new, McGlone’s long-term forecast places BTC close to the middle of the worldwide monetary system. “[W]e imagine Bitcoin represents the digital future,” McGlone stated after explaining that the greenback has superior greater than 300% in opposition to main friends since President Richard Nixon nixed the dollar’s gold peg in 1971. He additional defined:
“We foresee a way forward for Bitcoin, the digital reserve asset, complementing the greenback reserve foreign money.”
Bitcoin’s most passionate supporters have lengthy argued that the cryptocurrency would mature to become a global reserve asset. Their conviction stems from Bitcoin’s superior financial coverage in an period the place central banks have inflated the cash provide, contributing to wealth inequality and better costs for items, companies and property.
Bitcoin’s worth proposition has additionally been acknowledged inside institutional circles, with JPMorgan Chase and BlackRock arguing that BTC is eroding gold’s market share as a storehold of wealth.
Bitcoin worth broke in the direction of $51,000 on Friday because the broader cryptocurrency market rallied to over three-month highs. The entire market capitalization of all cryptocurrencies reached $2.4 trillion throughout Friday’s excessive in contrast with a low of round $1.2 trillion in mid-July.