Bloomberg's Senior Commodity Strategist Mike McGlone was recently a guest at Kitco News. He analyzed the current market and argued that Bitcoin will outperform all other assets in the world and hit $100 thousand by 2025.
According to McGlone, the great reversion is just getting started. The current market reflects the most significant inflation in 40 years, the first in most peoples lifetime. However, he also argued that once this period is over, Bitcoin will soar and become the best asset to hold in the world.
McGlone mentioned both Bitcoin and S&P 500 just returned to their 100-week mean at the end of May first time in two years. Nasdaq broke one of its prominent supports as Bitcoin broke its $30,000 support. McGlone argued as theyre all tied, the question becomes who will come out first and when.
He commented:
“For now, I expect Bitcoin to trade lower -I dont know by how much.[…] it could get down to 20,000, I doubt it does. But whatever happens, I fully expect it to get to 100,000 dollars in two years.”
Bitcoin adoption
To explain the reasoning behind his conclusion, McGlone mentioned the adoption rate of all crypto assets, especially Bitcoin. For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.
To stress more on the point of adoption, he shared the following statistics:
“Based on the total market cap of all equities on the planet […] crypto is about 1% of that. A few years ago, they were 0.01%. A few years before that, they were even less.”
He described Bitcoin as the digital gold in a world going digital with increasing speed. Moreover, as its adoption increases drastically, its supply diminishes due to its code. Therefore, McGlone concludes that Bitcoin prices will only skyrocket in the following years.
He also briefly mentioned Ethereum as a platform that revolutionizes the fintech industry, which provides a considerably high adoption rate. He argued that when the bear market is over and the right supports are found, Bitcoin and Ethereum will come out ahead of all other assets because their demand for adoption is much higher than the others.
He said:
“I think what‘s going to happen initially is we’re going to get through this flush period […] then I fully expect Bitcoin to be the first asset to go back to its outperforming trajectory.”
Bitcoin's volatility
McGlone also analyzed the recently changed sentiment towards Bitcoin. He was asked why Bitcoin became a risk-on asset while it behaved as a safe inflation hedge for so long.
McGlone answered the question by explaining that this volatility is just a maturation period of a nascent technology and asset. He mentioned:
“260 days volatility in Bitcoin is almost the same as Tesla's, the same as what Amazon was in 2009, and the same as what gold was in 1980.”
He concluded his words by saying that once the transition period for Bitcoin is over, it will become a risk-off asset that can be safely used as an inflation hedge.