Friday, February 5, 2021

Bitcoin Could Soar to $50,000, Bloomberg Analyst

Mike McGlone, a senior commodity strategist at Bloomberg, believes Bitcoin (BTC) will continue its bullish move towards $50,000 as investors move money from gold to digital assets.

“By 2024, Bitcoin’s volatility could reach the same level as gold, which could further push up prices”, McGlone said.

According to a report released on February 3, Bitcoin has the strong support of $30,000 and has the possibility of rallying over $50,000 due to increased interest of institutional investors and the potential of Bitcoin to become a global reserve asset.

The report gives evidence that funds are actually moving from gold to Bitcoin. It emphasizes that while the inflow of funds into the Grayscale Bitcoin Trust (GBTC) is accelerating, the gold holdings of existing ETFs are declining. Grayscale GBTC grew throughout 2020, rising from 1% to 10% of the $210 billion Gold Tracking ETF.

In a digital world, it’s logical to expect more money to flow towards Bitcoin and away from precious metals.

McGlone believes that investing up to 5% of your funds in Bitcoin is a wise decision as it will be as volatile as gold by 2024, the year of BTC’s next halving. The fixed supply of Bitcoin could be less volatile than gold, he said.

It would be naïve not to expect bumps in the road with the new technology, but unless human advancement, electrification and digitalization backpedal, Bitcoin is poised to eventually become a worthy substitute for gold in investment portfolios.

Bitcoin’s current 260-day volatility is 50%, which corresponds to the gold volatility of the 1980s.

Notably, McGlone also made mention Ethereum, the second-largest cryptocurrency by market capitalization. He points out that the $1000 mark is likely to be the support level for Ether.

At the time of writing, the ETH/USD pair is trading at $1,673. Meanwhile, at around 13:36 GMT, the premier cryptocurrency, Bitcoin was changing hands at the $37,898 level 0n Bitstamp.

Source: Tradingview

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