20.04.2024

Bloomberg Analyst Explains Why Bitcoin Could Rise To $ 400,000 This Year

The growing trend in the cryptocurrency market has caused major changes for Bitcoin. According to Bloomberg Intelligence analyst Mike McGlone, cryptocurrency is gradually becoming a «risk-free» asset for most investors.

With this in mind, McGlone expects the value of BTC to rise to $ 400,000 in 2021 . Such huge growth will lead to the fact that Bitcoin simply cannot be ignored in global finance.

Recall that forecasts in the cryptocurrency industry are heard quite often, and you can treat them in different ways. On the one hand, too high price levels can help novice investors to lose money, because they will wait for the achievement of these goals due to excessive greed.

On the other hand, forecasts are able to attract new people to the niche who will get to know the blockchain in more detail and appreciate its advantages in practice.

We considered this topic in detail in a separate article. We recommend that you familiarize yourself.

What will happen to Bitcoin in 2021?

Taking into account the dynamics of the market in previous bullish cycles, McGlone concluded that by the end of this year, the main cryptocurrency may well reach the level of 400 thousand dollars. It is noteworthy that this forecast is at odds with another well-known stock-to-flow model, according to which Bitcoin will grow to an average of 288 thousand dollars in 2021 .

Here is an analyst quote from Cointelegraph.

In my opinion, Bitcoin is on track to become a global digital reserve asset that will be risk-free for investors.

That is, the expert assumes that Bitcoin is now ready to outgrow the reputation of an asset, the value of which is controlled solely by speculation. Now BTC can turn into a full-fledged investment tool that will protect investors from inflation and increase their fortune. And this really looks like the truth, given that Tesla began accepting bitcoins as payment for its cars the day before.

cryptocurrency trading chart

Bitcoin Projected Growth Chart Published by McGlone

Why does Bitcoin reduce the risk of an investment portfolio? Throughout its history, BTC continues to maintain a global bullish trend. In other words, bitcoins are constantly increasing in value due to the limited supply over the long term. Any increase in demand for cryptocurrency is sharply reflected in the growth of its value. Even large investors who start converting their capital into BTC are aware of this and only accelerate the growth of the crypto market.

On the way to a new all-time high, Bitcoin will definitely show several corrections – that is, crashes – of at least 15 percent. This is a healthy process for traders and investors to take profits, but in the long term, the rise in the value of BTC remains almost an undeniable fact.

This view coincides with a recent statement by the Soros Foundation’s CIO, Don Fitzpatrick. The organization, founded by world renowned investor George Soros, is also interested in Bitcoin’s prospects, he said. Here is a quote from an expert in which he talks about the situation.

We think that all the infrastructure related to cryptocurrency is really interesting, and we have made some investments in this infrastructure – a tipping point is coming right now.

This tipping point is a consequence of growing inflation, artificially created. As a result, its money supply in US dollars has increased by 25 percent in the last year alone. The expert continues.

I think that when it comes to cryptocurrency in general, we are at a very important point in time, as something like Bitcoin could remain a minor asset, but in the last 12 months, the money supply in the US has increased by 25 percent.

In the long term, an increase in the money supply should devalue existing money. Nevertheless, the supply of dollars and other currencies will increase, while other indicators by the type of production against this background will remain the same.

Given the weakness of the dollar, world currencies are rapidly losing their attractiveness for investment. The aforementioned limited BTC supply plays into the hands of the cryptocurrency, which could soon become the backbone of global finance.

We believe that the perspective of a Bloomberg Intelligence analyst has a right to exist. Moreover, the goals of the asset value are completely unimportant here. Mike McGlone first of all declares that BTC is ready to move to a new level and turn into an asset, the attitude towards which among people will be completely different. Bitcoin is now proving its ability to protect against inflation and increase investment. And the more people are interested in it, the more actively BTC will fulfill this role.

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