A senior strategist with Bloomberg Intelligence says that he doesn’t see what’s going to cease bitcoin from appreciating. He explains that as bitcoin matures, it’s going to commerce extra like gold than shares. The strategist additionally shares his view on how the November presidential election may have an effect on the worth of bitcoin.
Bitcoin Will Carry on Appreciating
Bloomberg Intelligence’s senior commodity strategist Mike McGlone informed Kitco Information on Thursday that he doesn’t see what’s going to cease bitcoin from appreciating in worth. Discussing the inventory market outlook, the gold market, and cryptocurrencies, he was quoted as saying:
The important thing factor about bitcoin is that I don’t see what’s going to cease it from doing what it has been doing for many of its life, and that’s appreciating.
McGlone identified that bitcoin’s value “has a historical past of including zeros,” going from $100 to $1,000 after which $10,000. He famous that the worth of the cryptocurrency has been consolidating for the previous three years.
The strategist believes that as bitcoin matures, it’s going to commerce extra like gold, which is a retailer of worth, and fewer like shares, that are dangerous belongings. He famous that bitcoin and gold have an in depth correlation with one another this 12 months, which he believes will maintain. He additional mentioned that the identical macroeconomic forces pushing gold increased are additionally more likely to drive the worth of bitcoin.
McGlone defined that indicators of maturity for bitcoin embrace extra adoption, decrease volatility, and buying and selling patterns which can be extra much like that of gold. “Bitcoin is following gold, gold’s made new highs, however its macroeconomic setting I feel is kind of important: unprecedented debt to GDP, quantitative easing, unfavorable charges, it makes issues like gold and bitcoin look enticing,” he detailed.
The Bloomberg strategist reiterated that “Greater costs truly improve demand” however there isn’t a improve within the provide of bitcoin. Whereas cautioning that bitcoin can count on resistance on the $14,000 value degree within the quick time period, McGlone believes that if Joe Biden wins the November presidential election, “A Blue Wave would offer additional tailwinds to the worth.”
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