He emphasizes that the popularity of several bitcoin ETFs in Canada demonstrates a shift in sentiment among institutional investors in favor of cryptocurrency # 1, and also leads to the fact that more such investors are starting to apply to the US Securities and Exchange Commission (SEC) for launch of similar financial products in the USA.
Bitcoin has reached the required level to resume the bullish rally. The author of the research report Bloomberg Crypto Outlook, analyst Mike McGlone, believes that in the second half of this year there will be a decrease in the price of oil and, at the same time, an increase in the value of bitcoin and gold. In his opinion, the cryptocurrency is ready to resume growth towards $ 100,000.
The steady decline in yield rates on 30-year US debt securities (from 2.415% on May 12 to 1.89% on July 8) appears to be a sign that such instruments are becoming less competitive in terms of return on investment than Bitcoin and gold.
“Bitcoin is ready to return to the channel of the bullish trend, and crude oil is ready to resume the bearish trend in the second half of the year,” McGlone wrote on Twitter.
However, when exactly Bitcoin can resume growth remains unknown. Nevertheless, McGlone is confident that this time the growth of the cryptocurrency will “have serious macroeconomic consequences.” For example, a Bloomberg analyst believes that bitcoin has become a rapidly evolving technology that reflects deflation.
Comparing the behavior of Wall Street indices and the price of bitcoin, the analyst draws attention to the fact that if bitcoin went from the historic highs of mid-April to a correction of more than 50%, then on July 7, the S&P 500 and the Nasdaq reached historic highs. McGlone believes that bitcoin will catch up in the second half of this year and has more upside potential than stocks traded on Wall Street.
This isn’t the first time McGlone predicts cryptocurrency growth. For example, in early February of this year, he said that the volatility of bitcoin could increase the gap between the price of cryptocurrency and gold “hundreds of times.”
The essence of this trajectory, according to the analyst, is that bitcoin holds the target to be near a price point that is 100 times the value of a troy ounce of gold. Currently, a troy ounce of gold is trading around the $ 1.8 thousand mark.
At the same time, the instability of many altcoins can play into the hands of the largest cryptocurrency in terms of capitalization. According to analysts at Bloomberg Intelligence, altcoins, to a large extent, develop due to speculation. Moreover, the fall of minor digital currencies could strengthen the position of the main cryptocurrency in the status of “reserve currency”, McGlone believes.