Mike McGlone says Bitcoin has started February in a cage between $30,000 and $40,000.
The risk of missing out on Bitcoin’s bull run exceeds the danger of the cryptocurrency failing, according to Bloomberg’s Mike McGlone.
In his latest crypto outlook, the analyst said that the BTC bull appears to be napping right now — with the world’s biggest cryptocurrency starting February in a cage between $30,000 and $40,000 after consolidating.
McGlone, who previously predicted that Ether would remain in a range of between $500 and $700 in 2021, described ETH’s outperformance when compared with BTC as “indicative of the enduring nature of fintech in a world dominated by zero or negative interest rates and quantitative easing.” However, he suggested that any further gains for ETH will depend on Bitcoin continuing to rise.
The analyst went on to predict that money will continue to flow out of the precious metal markets and into products that track Bitcoin’s price, writing:
“Bitcoin's potential to become a reserve asset in a world going digital is a prime price support. In addition to the fact that traditionally focused gold allocators are at increasing risk if Bitcoin succeeds, there's ample evidence of funds moving to the crypto from the metal.”
And in the long term, McGlone also predicted that Bitcoin’s volatility may match gold’s by the time of the next halving in 2024. He wrote: “Bitcoin volatility typically increases when prices advance into uncharted territory, which is part of the process of the benchmark crypto evolving into a digital version of gold and reducing its volatility, in our view.”
All of this came as Jesse Cohen, an analyst at Investing.com, boldly predicted that Bitcoin will hit $60,000 in 2021.