Mike McGlone says crypto assets are now poised to thrive after surviving a brutal correction that saw BTC slide below $30,000.
Bloomberg Intelligence has said further dramatic gains in the crypto markets are now “the path of least resistance” — with a senior strategist setting price targets of $100,000 for Bitcoin and $5,000 for Ether.
In the September edition of his crypto outlook, Mike McGlone said crypto assets are now poised to thrive after surviving a brutal correction that saw BTC slide below $30,000.
Noting that BTC has risen by 71% year-to-date, meaning that it has been comfortably outperformed by ETH’s gains of 415% over the first eight months of 2021, he wrote:
“Bitcoin has been a laggard amid the DeFi revolution led by Ethereum. The digital reserve asset in a world going that way and the building block of fintech is how we respectively view the No. 1 and No. 2 cryptos. Success breeds competition, as evidenced by Cardano advancing to No. 3, but so-called Ethereum killers have a history of speculative excesses.”
Subscribe to the CoinMarketRecap podcast on Apple Podcasts and Spotify!
‘A Gut-Wrenching Correction’
McGlone’s newfound optimism comes after dramatic declines in the value of major coins. In his view, the crypto market has a better chance of resuming its upward trajectory than returning to the lows seen in the second quarter. He wrote:
“What could stop Bitcoin and Ethereum from achieving record highs in 2H may be the more elusive question. Increasing demand and adoption are facing diminishing supply.”
With ETH now trading at a 10% discount from its all-time high, the Bloomberg Intelligence report says diminishing supply — exacerbated by staking and the burning of transaction fees — fuels “upward bias” in the months ahead.
And when it comes to the long-term view, McGlone wrote:
“Bumps in the road should be expected, but Ethereum appears on an enduring path as the go-to platform for the crypto ecosystem and decentralization of finance akin to Amazon Inc. and e-commerce.”
