Bitcoin 'Has Fuel for Sprint to $100,000'
Bitcoin

Bitcoin 'Has Fuel for Sprint to $100,000'

6 months ago

In new research, commodity strategist Mike McGlone said global asset managers who don’t have exposure to BTC and ETH “may need to rethink their approach as 2022 draws near.”

Bitcoin 'Has Fuel for Sprint to $100,000'

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Bitcoin has “fuel for a year-end sprint toward $100,000,” according to Bloomberg Intelligence.

In new research, commodity strategist Mike McGlone said global asset managers who don’t have exposure to BTC and ETH “may need to rethink their approach as 2022 draws near.”

McGlone went on to predict that regulatory clarity will begin to emerge in 2022 — further validating digital assets and emboldening financial institutions to get involved in the space. He added:

“A melt-up in Bitcoin and Ethereum into year-end is likelier than retracement, we believe, after 2021 corrections cleansed speculative positions, and with increasing demand and adoption, and declining supply, sustaining a bull market. The startup of U.S. ETFs and the fact that cryptos counter China bans limit downside risks.”

At present, McGlone believes that $60,000 is beginning to look like a “firmer floor” for Bitcoin. And — if the world’s biggest cryptocurrency manages to catch up to the performance of Ether — he says BTC’s target resistance value would be at approximately $100,000.

Explaining why money managers need to reconsider their strategies, he pointed to how Bloomberg’s crypto and DeFi indexes have outperformed the S&P 500 dramatically so far in 2021.

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The Future

McGlone went on to describe the current size of the Bitcoin futures market as “miniscule” — “leaving room for expanded participation and potential price appreciation.”

At present, open interest in BTC futures stands at $4 billion, more than 20 times less than gold on $90 billion.
The analyst went on to say that Ether’s reputation as a top-performing major crypto asset is set to endure after a drawdown of about 60% earlier this year. While acknowledging that the Ethereum blockchain could be derailed by newer technologies and a competitive landscape, McGlone argued that promising protocol upgrades are paving the way to ETH 2.0, adding: 

“Demand is increasing, supply is declining and Ethereum's position at the epicenter of the digitization of finance and money is a foundation for further price appreciation. The No. 2 crypto — the denominator for NFTs and top platform for tokenization -- is well on its way to becoming the collateral of the internet, akin to Bitcoin's trajectory to be the global digital reserve asset.”

Despite McGlone’s bullishness on the big beasts in the crypto world — Bitcoin, Ether and Tether — he expresses a greater amount of caution when it comes to altcoins.

He pointed to how XRP, Bitcoin Cash and Chainlink were among the top six cryptocurrencies by market cap this time last year, but now, they have all been overtaken by newer projects.

We spoke to Mike McGlone in September:

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