Bitcoin (BTC) has risen to not often seen worth highs, presently stalling between $17,000 and $18,500 earlier than deciding on its subsequent transfer. Gold lately broke all-time U.S.-dollar worth highs, surpassing $2,000 per ounce earlier than pulling again and consolidating in worth. Bloomberg Intelligence strategist Mike McGlone thinks the identical might occur with BTC.
“Brief time period, $20,000 is fairly good resistance,” he said in a Bloomberg interview on Wednesday.
“I’m afraid it’s most likely going to do what gold did. It bought to $2,000, after which that’s been consolidating in a bull market since.”
Bitcoin rose to just shy of $18,500 on Tuesday earlier than falling near $17,200 shortly after, based mostly on TradingView.com data. Since then, the asset has traded sideways, consolidating between these two ranges. On a longer-term scale, McGlone expects additional bullishness for Bitcoin within the coming years. He defined:
“The important thing factor about Bitcoin this yr could be very easy — it simply added a one to the entrance of the quantity. Bear in mind, it was round $7,000 on the finish of final yr. What I’m apprehensive about — for those who have a look at the previous efficiency, which is doubtlessly indicative of the long run, subsequent yr or two might add a zero to the again of the quantity.”
Together with his reference to $7,000 close to the top of 2019, Bitcoin added a one to that determine, making it $17,000. Including a zero to the again of $17,000 provides a future projection of $170,000. Bitcoin had already breached $18,000 throughout McGlone’s interview, nonetheless, so including a zero might arguably imply a future worth of $180,000.
McGlone touched on a lot of different vital factors in the course of the temporary section, together with a reference to Bitcoin’s worth swings. “Bitcoin is turning into a digital model of gold,” he defined. “One key level that’s taking place this yr is Bitcoin volatility has been declining,” he mentioned. “Actually, it’s the bottom ever versus gold.”
The strategist additionally defined low Bitcoin volatility towards the Nasdaq, a typical mainstream market barometer. “Each different threat asset on the planet, volatility has been growing, Bitcoin has been declining.”
McGlone additionally talked about “institutional FOMO” on Bitcoin consistent with cash printing. This yr has seen a lot of mainstream monetary gamers purchase stacks of Bitcoin, such as MicroStrategy and Jack Dorsey’s Square.