Bloomberg Intelligence analyst, Mike McGlone said in a March outlook report that Bitcoin could head towards $100,000 as per recent market indicators. He previously predicted Bitcoin’s ascent this year to a price above $50,000 correctly.
McGlone Notes Bitcoin Heading Towards $100,000
In a March edition of Bloomberg Crypto Outlook, McGlone notes that Bitcoin is heading towards $100,000 as it edges closer to replacing gold as a reserve asset.
Grayscale #Bitcoin Trust Discount May Signal March to $100,000 – Bitcoin's end of February price disparities on U.S. regulated exchanges portend a firming price foundation, if history is a guide, and are evidence of just how nascent the crypto is. pic.twitter.com/qj6hfTvH8K
— Mike McGlone (@mikemcglone11) March 4, 2021
McGlone highlights that the Grayscale Bitcoin Trust (GBTC) closed at a 2.7% discount at the end of February. He wanted to point out to March 2017 when Bitcoin backed up to nearly $1,000 on the way to its peak near $20,000 in December of that year. This indicates that Bitcoin could be preparing for a two-fold increase.
The analyst further indicated that with GBTC’s price drop, along with CME-traded BTC futures trading significantly higher, the leading cryptocurrency has formed a solid price foundation, saying:
“Bitcoin’s end of February price disparities on U.S. regulated exchanges portend a firming price foundation, if history is a guide, and are evidence of just how nascent the crypto is. Indicating capitulation selling, the Grayscale Bitcoin Trust closed at its steepest discount ever, while December CME-traded Bitcoin futures settled about 20% higher.” He further added:
“The increasing probability of exchange-traded funds in the U.S., on the back of launches in Canada, are adding pressure to the trusted price, but we see sustaining the upward trajectory as the more likely outcome.”
Investors Moving to Bitcoin from Gold
McGlone also noted the increased process of replacing Gold with Bitcoin to diversify an investor’s portfolio, saying:
“In 2020, the benchmark crypto gained legitimacy with declining volatility vs. the opposite in most assets. In 2021, we see little to stop the process of old-guard gold allocators simply focusing on prudent diversification.”
He says the change in investment preference comes as Bitcoin undergoes a decline in volatility.