Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, has projected an increase in the price of Bitcoin, that may challenge the quick increase in 2013. He claims that his current models indicate that BTC could reach up to $400,000 in 2021.
McGlone says that the currency’s technical outlook keeps growing strong. He also added that this feat could be possible since companions for strong annual rallies in the “first-born crypto” are favorably aligned. He further stated that:
“Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. …the crypto would approach $400,000, based on the regression since the 2011 high.”
The analyst also mentions that Visa, Morgan Stanley, and Goldman Sachs have adopted the digitalization of money. He says this indicates that BTC could replace gold as the global digital-reserve asset.
“Bitcoin adoption has become more sudden than gradual and is likely to accelerate, as we see it, underpinning its price for the foreseeable future and magnifying the dollar’s dominance as the reserve currency.”
McGlone also cites Tesla, the world’s largest automaker, converting its worth to Bitcoin, which is evidence of the currency’s mass adoption. He also mentioned that crypto payments to merchants have increased, which is another indication that the $400,000 feat is possible.
Partly responsible for the increase in the mass adoption of BTC is the COVID-19 lockdown and lower crypto transaction fees.
Image Credits: Pixabay
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