Commodity Analyst: ‘I Don’t See What’s Going to Stop Bitcoin From Appreciating’

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 might have an effect on the value 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 is 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 value 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 property. He famous that bitcoin and gold have a detailed correlation with one another this yr, which he believes will maintain. He additional mentioned that the identical macroeconomic forces pushing gold greater are additionally probably to drive the value of bitcoin.

McGlone defined that indicators of maturity for bitcoin embrace extra adoption, decrease volatility, and buying and selling patterns which can be extra related to that of gold. “Bitcoin is following gold, gold’s made new highs, however its macroeconomic atmosphere I believe is kind of important: unprecedented debt to GDP, quantitative easing, detrimental charges, it makes issues like gold and bitcoin look enticing,” he detailed.

The Bloomberg strategist reiterated that “Larger costs really enhance demand” however there isn’t a enhance within the provide of bitcoin. Whereas cautioning that bitcoin can count on resistance on the $14,000 value stage within the quick time period, McGlone believes that if Joe Biden wins the November presidential election, “A Blue Wave would supply additional tailwinds to the value.”

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