Bloomberg’s chief commodity strategist, Mike McGlone, took to Twitter on Thursday to share his projections on when Bitcoin(BTC) will resume its bull market and reach the $100,000 mark. McGlone painted a bright picture for the flagship cryptocurrency in the second half of the year while predicting an incoming bear market for crude oil.
McGlone elaborated on his prediction with two accompanying charts comparing the course of a futures contract based on BTC against Brent crude oil and Bitcoin’s 260-day volatility against that of crude oil.
The economist explained that Bitcoin will see a return to bullish trends in the second half and will eventually move towards the $100,000 price target. He also believes that crude oil price will decline up to $50 from its spot price of $72.10 per barrel. In McGlone’s view, these developments are likely to have “profound macroeconomic implications.”
He also underscored the two factors that work in Bitcoin’s favor -- rapidly advancing technology and deflation.
As of press time, Bitcoin was trading at $32,445 after sliding from the $34,800 mark on Wednesday. The primary cryptocurrency has dropped by 40% in the second quarter, which represents one of the biggest slumps in its history. Bitcoin recorded its sharpest decline after Elon Musk announced that Tesla would suspend BTC payments due to environmental concerns over its mining.
The ongoing uncertainty in Bitcoin price has failed to deter institutional investors from increasing their exposure to the asset. According to a survey conducted by UK-based investment manager Nickel Digital Asset Management, 82% of institutional investors in the US, UK, France, Germany, and the UAE are expected to increase their crypto holdings by 2023.
Meanwhile, crypto analytics firm IntoTheBlock reported that its IOMAP indicator showed “stiff resistance and one last key level of support” that would prevent Bitcoin from falling below $30,000. The tweet followed BTC’s decline from its crucial support level of $33,000.
The firm also revealed that investors are actively buying the current dip in Bitcoin. As per its findings, Bitcoin registered 314,000 addresses that bought 241,000 coins when the price was trending between $30,000 and $31,100 in late June.