Million-dollar Bitcoin (BTC) is still on the table, according to Bloomberg’s senior commodities analyst Mike McGlone, who believes that the first cryptocurrency ever created is well positioned to replace the United States dollar as the world’s de facto reserve currency.
After surviving over 50% drop over the summer, the September issue of Bloomberg’s Cryptocurrency Outlook labeled $100,000 BTC and $5,000 Ether (ETH) as the “path of least resistance.”
“Crypto-assets seem in a revitalized and renewed bull market, with the second-half benefiting from a significant discount from prior peaks at the beginning,” McGlone said, referencing the second half of 2021.
Portfolios without BTC or ETH ownership are “naked,” he says, citing the comparable underachievement of gold and government debt: “Portfolios containing some mixture of gold and bonds look more naked without a little Bitcoin and Ethereum entering the mix.” A macroeconomic risk-off collapse is the most serious danger to the cryptocurrency bull market.”
Although six-figure Bitcoin forecasts are nothing unusual, McGlone’s protracted prognosis places BTC in the heart of international financial sector. “[W]e think Bitcoin symbolizes the digital future,” McGlone said, noting that the dollar had risen over 300% versus key rivals since President Richard Nixon abolished the greenback’s gold peg in 1971.
He went on to say, “We envision Bitcoin, the digital backup asset, supplementing the dollar reserve currency in the years ahead.” Bitcoin’s most ardent proponents have long claimed that the cryptocurrency will eventually develop into a worldwide reserve asset. Their belief is based on Bitcoin’s better monetary policy in an age when central banks have bloated the monetary base, leading to wealth disparity and increased pricing for products, services, and resources.
Bitcoin’s business model has also been acknowledged by institutional investors, with JPMorgan Chase and BlackRock claiming that BTC is diminishing gold’s market share as a safe investment. Bitcoin reached $51,000 on Friday, as the wider cryptocurrency market surged to more than three-month peaks. During Friday’s peak, the entire market value of all cryptocurrencies hit $2.4 trillion, up from a low of about $1.2 trillion in mid-July.
