A senior strategist at Bloomberg Intelligence stated that he did not see the reason to stop Bitcoin’s appreciation. He explained that as Bitcoin matures, its trading will be more like gold than stocks. The strategist also expressed his views on how the November presidential election will affect the price of Bitcoin.
Bitcoin will continue to appreciate
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, told Kitco News on Thursday that he doesn’t see anything that will prevent Bitcoin’s appreciation. When talking about the prospects of the stock market, the gold market and cryptocurrencies, he was quoted as:
The key to Bitcoin is that I don’t see anything that will prevent it from continuing to do what it has been doing throughout its life, which is admirable.
McGlone pointed out that the price of Bitcoin “has a history of adding zero”, ranging from $100 to $1,000 to $10,000. He pointed out that the price of cryptocurrencies has been consolidating in the past three years.
The strategist believes that as Bitcoin matures, its transactions will be more like gold, which is a store of value, rather than a risky asset like stocks. He pointed out that there is a close connection between Bitcoin and gold this year, and he believes this will continue. He further stated that the same macroeconomic forces that promote the rise of gold may also push the price of Bitcoin.
McGlone explained that signs of Bitcoin’s maturity include greater adoption, lower volatility, and trading patterns that are more similar to gold. He elaborated: “Bitcoin followed gold and gold hit new highs, but I think its macroeconomic environment is quite important: unprecedented debt to GDP, quantitative easing, negative interest rates, which make gold and Bitcoin Things like that look very attractive.”
Bloomberg strategists reiterated that “higher prices actually increased demand”, but the supply of Bitcoin did not increase. While warning that Bitcoin is expected to meet resistance at the $14,000 price level in the short term, McGron believed that if Joe Biden wins the November presidential election, “blue waves will provide further resistance to prices. “
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