Mike McGlone of Bloomberg believes Bitcoin could reach $170,000 in the next two years
Bitcoin could reach a historic high and then consolidate as gold did, according to the analyst.
Bitcoin (BTC) has reached prices that haven’t been seen for a long time, currently stagnating between USD 17,000 and USD 18,500 before deciding on its next move. Gold recently broke its historical high in US dollars, surpassing USD 2,000 per ounce before retreating and consolidating at that level. Bloomberg’s intelligence strategist, Mike McGlone, thinks the same could happen to BTC.
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„In the short term, $20,000 is a good resistance,“ McGlone said in an interview with Bloomberg last Wednesday.
„I’m afraid it will probably do the same thing that gold did. It got to $2,000 and has been in a bullish market ever since.
Bitcoin rose to just under $18,500 Tuesday before falling to $17,200 soon after, according to TradingView.com. Since then, the asset has been trading sideways, consolidating between those two levels. On a long-term scale, McGlone expects a larger upward trend for Bitcoin in the coming years. He explained:
„The key factor for Bitcoin this year is very simple: You just added a one to the beginning of the number. Remember that it was around $7,000 at the end of last year. What worries me, if you look at the performance in the past, which potentially indicates the future, next year or two could add a zero at the end of the number“.
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With its benchmark of $7,000 at the end of 2019, Bitcoin added a one to this number, making it $17,000. Adding a zero to the back of $17,000 gives a future projection of $170,000. However, Bitcoin had already passed the $18,000 mark during the McGlone interview, so adding a zero could mean a future price of $180,000.
McGlone addressed other important points during the short segment, including the reference to Bitcoin’s price swings. „Bitcoin is becoming the digital version of gold,“ he explained. „A key point we’re seeing this year is that the volatility of Bitcoin has been decreasing,“ he said. „In fact, it’s the lowest in history compared to gold.
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The strategist also explained the low volatility of Bitcoin against the Nasdaq, a conventional market index. „All the other risk assets in the world, their volatility has been increasing, Bitcoin’s volatility has been decreasing“.
McGlone also mentioned the „institutional FOMO“ in Bitcoin goes hand in hand with printing money. This year several conventional financial players have bought large amounts of Bitcoin, such as Jack Dorsey’s MicroStrategy and Square.