The crypto market went through a massive correction these days and several assets, led by Bitcoin and Ethereum, are on the track for new highs. And some analysts believe that this is a clear sign that we will see BTC reaching six digits by the end of 2021.
Mike McGlone, senior commodity strategist at Bloomberg, claims that the world’s biggest cryptocurrency, in terms of market cap, has all the chances of becoming a global reserve asset, complementing the United States Dollar.
The current bull market could be just the start
In Bloomberg’s September Crypt Outlook figures like $100,000 for BTC and $5,000 for ETH are mentioned, as the two assets are on the “path of least resistance”, following an aggressive 50% correction through the last three months.
“Crypto-assets appear in a revived and refreshed bull market with the 2H benefit of a steep discount from previous highs at the start,” McGlone wrote.
“Portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix. A macro-risk decline is a primary threat for the crypto bull market.”
Not a first, in terms of predictions
Obviously, this is not the first time we’re hearing about Bitcoin being able to reach $100,000. However, the long-term forecast issued by Mike McGlone puts the token very close to the center of the global financial system.
Even more, there are a lot of huge crypto supporters who believe that Bitcoin has matured enough and it could be on its way to becoming a global reserve asset. Specifically, this is happening following the inflation of money supply by central banks, thus leading to wealth inequality and constantly increasing prices for goods, services and assets.
“We foresee a future of Bitcoin, the digital reserve asset, complementing the dollar reserve currency,” McGlone concluded, after adding that ever since the 70s the dollar managed to advance more than 300% against major peers.