By
Bhushan Akolkar
April 25th, 2024
Earlier in May, Bloomberg Senior Commodity Strategist Mike McGlone said that the price dip suggested that Bitcoin and altcoins had “entered the mainstream”. These sentiments are reiterated in the latest Crypto Outlook report.
Bitcoin (BTC) is set to reach $100,000 according to the September edition of Bloomberg Crypto Outlook report. The report suggests that now following the correction of the crypto market, it is “onward and upward” for crypto.
This is by no means the first time such a Bitcoin price prediction has been made. Crypto enthusiasts and experts have made some seemingly bold predictions, some even suggesting $1 million as an eventual possibility.
Bitcoin and Ether: Least Resistance
Earlier in May, Bloomberg Senior Commodity Strategist Mike McGlone said that the price dip suggested that Bitcoin and altcoins had “entered the mainstream”. These sentiments are reiterated in the latest Crypto Outlook report.
The report suggests that $100,000 for Bitcoin and $5,000 for Ether is not only feasible but in fact, “the path of least resistance”. According to the Bloomberg report, BTC has the potential to establish itself as the global reserve asset.
“Crypto-assets appear in a revived and refreshed bull market with the 2H benefit of a steep discount from previous highs at the start. Bitcoin has been a laggard amid the DeFi revolution led by Ethereum. The digital reserve asset in a world going that way and the building block of fintech is how we respectively view the No. 1 and No. 2 cryptos,” reads the report.
The Path to Global Reserve Asset
Bitcoin has long been described as ‘digital gold’ or ‘the new gold’. Some have even suggested that Bitcoin be used as a global reserve asset in place of the US Dollar. While such comparisons have ofter been dismissed, Bloomberg, in this report at least, acknowledges Bitcoin’s advantages over the Dollar as a global reserve. Some perks mentioned are that bitcoin is ‘easily transportable and transactional, has a 24/7 price discovery, relatively scarce and is nobody’s liability or project’.
In a global economy where many central banks have elected not to down-size their balance sheets or decrease liquidity, scarce assets are expected to outperform. This, coupled with Bitcoin’s multiple, the progressive case uses, could be push and maintain Bitcoin prices.
As for comparing the Bloomberg Galaxy Crypto Index (BGCI) and the S&P 500, the report says, “The equity market [has] basically [been] tracking quantitative easing as measured by the upward trajectory of G4 central bank balance sheets. Both indexes represent risk exposure, but unlike the S&P 500, the BCGI includes Bitcoin, which is well on its way to becoming the digital reserve asset in a world going that way.”
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