Mike McGlone, Bloomberg Intelligence senior commodity strategist, has recently affirmed his Bitcoin price prediction of $100K and sees $5K of Ethereum as the path of least resistance. The analyst has explained that he expects the crypto market to thrive as a “refreshed bull market”.
The analyst’s price predictions were discussed in the September edition of Bloomberg Crypto Outlook, which was published on Friday, September 3rd.
In the publication, Mike McGlone shared his predictions for both Bitcoin and Ethereum, confirming the $100K Bitcoin price prediction that has been in the pipeline for some time.
“We see Ethereum on course toward $5000 and $100,000 for Bitcoin. Portfolios of some combination of gold and binds appear increasingly naked without some Bitcoin and Ethereum joining the mix.”
The analyst also predicted a bull market: “Crypto-assets appear in a revived and refreshed bull market with the 2H benefit of a steep discount from previous highs at the start.”
The price of ETH is increasing
McGlone explained that the “diminishing supply” of ETH is boosting its price amid increasing demand, emphasising that Ethereum is the main denominator for NFTs which are said to be “gaining traction”.
The analyst discussed the “accelerating downward trajectory of new Ethereum supply, in the aftermath of protocol change that began burning costs at the start of August.”
He also affirmed that “the 52-week rate-of-change in the amount of new Ethereum vs the total outstanding is on track to drop below 4%.”
Mike McGlone proceeded the publication by saying that $100K for Bitcoin is “highly probable, especially after last year’s supply cut.”
“Post-halving years have seen the greatest appreciation, and 4x in 2021 would be quite tame for the No.1 crypto compared with 55x in 2013 and 15x in 2017.”
The Bloomberg analyst stated that “having survived correction, crypto-assets are now poised to thrive.”
Do these price predictions line up with recent activity?
It has been predicted for a while that Bitcoin will eventually reach $100,000. Well, Bitcoin activity over the last year could indicate that these price predictions are not too far fetched.
At the beginning of 2021, Bitcoin reached $50,000 for the first time. The cryptocurrency has one of the most volatile trading histories and the price of the coin has seen a number of bubbles since its creation in 2009. Since 2009, the price of a single Bitcoin has soared by over 1000 per cent.
The same Bloomberg analyst that affirmed Bitcoin’s price of $100K, Mike McGlone, predicted at the beginning of the year that the coin will reach $100K in 2021 but will then fall down to $20K. This prediction is probable considering the coins volatile history, with the price of Bitcoin halving in 2012, 2016 and 2020.
It is expected that the halving schedule will not stop until the year 2140 when the last 21 million coins will be released. Until this time, traders should be aware of possible halving years and consider the volatile market when placing their trades.