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- The Bloomberg strategist still maintained his previous stance about Bitcoin hitting $100,000.
- He also predicts a rally for the leading digital asset along with gold and treasury bonds.
Bloomberg’s senior commodity strategist is convinced that Bitcoin can still trade at $100,000. He also predicts a further drop in global oil prices. The drop in oil prices, an indicator of global deflationary trends, would cause the US Fed to stop hiking rates. A recent survey by New York’s Federal Reserve bank revealed a significant drop in inflation expectations across the US.
Nevertheless, McGlone believes that these macroeconomic factors could increase the price of gold. Hence, he predicts that the gold price will hit $2,000 soon. Thus, Bitcoin would switch to become the high beta version of the yellow metal and Treasury bonds. McGlone’s previous prediction that Bitcoin would trade at $100,000 by the end of last year didn’t come to pass despite insisting on it last year.
A Matter of Time? $2,000 #Gold, $100,000 #Bitcoin, $50 #CrudeOil –
The energy spike is proving its own worst enemy, with macroeconomic implications that may buoy gold and help Bitcoin transition toward a high-beta version of the metal and Treasury bonds. pic.twitter.com/4RO3wkMYxf
— Mike McGlone (@mikemcglone11) August 8, 2022
As of June 2022, the price of the leading digital asset was $17,600. Yet, the Bloomberg analyst insists that Bitcoin would still trade at $100,000. However, he didn’t give a specific timeline for when that would happen, saying it is a “matter of time.” The extremely strong jobs report from last week, which was highly surprising to many, would encourage the US Fed to lower rates aggressively.
In June, McGlone stated that an “emboldened” fed would be the most significant determinant of the upward or downward bias for Bitcoin and the broader crypto market. Bitcoin currently trades at $23,788, but it is still 65.41 percent off its all-time high and about 317 percent off from reaching McGlone’s $100,000 prediction.
Transitioning to a risk-off asset
In an interview on Monday, McGlone predicted that Bitcoin would likely transition to a risk-off asset in the second half of this year. He added that the leading digital asset would no longer be a risk-on asset like the stock market. He based his reason on the rapid shift of the macroeconomic environment towards a recession.
The analyst further said that the crypto market has removed “the majority of the speculative excesses that characterized the market in 2021.” Hence, the market is now ready to embark on a new rally. He also said that several positive on-chain metrics prove that there is increasing demand for Bitcoin.
“There have been many more different addresses used, a lot of zero-balances addresses. Many now believe Bitcoin is a global digital collateral, and it’s a greater risk not to have a part of it.” Yet, supply keeps declining. McGlone expects the recession to favor Bitcoin over commodities and crude oil.
He predicts that Bitcoin will continue to recover since adoption will continue to increase. Hence, it would build a base around the $20,000 level in the second of this year as it did in 2018 when it built a base around the $5,000 level. By the end of the year, we will know whether McGlone’s BTC price prediction is right or wrong again.