The world’s first cryptocurrency, Bitcoin, could have a $100,000 price tag 5 years from now, Bloomberg senior commodity strategist, Mike McGlone said. BTC has an illustrious history of adding more zeros to its value since 2011. This trend could continue well into the future. Also, the first cryptocurrency could attain a $14,000 price by the end of this year.
Bitcoin On Track For $100,000 in 2025: Mike McGlone
In the October edition of the Bloomberg Crypto Outlook, Mike McGlone, a seasoned Bloomberg Intelligence market analyst and commentator said that Bitcoin could continue appreciating in price on the back of increased adoption. Something it has been consistent at ‘for most of its nascent existence’. But this will happen at a slower pace. Why?
Probably because the Bitcoin market will see a slower infusion of capital with passing time, as explained in-depth by Harold Christopher Burger in his insightful blog.
Coming back to Mr. McGlone’s analysis. BTC he commented has exhibited a trend of adding ‘zeros to its price from around $10 in 2011’.
It took about four years to go from $1,000 to $10,000 in 2017, so doubling that time frame for maturation could get the price toward $100,000 in about five more years.
Adding to his point above, Mike said that Bitcoin’s demand indicators are positive. Barring the stablecoin market, the rest of the cryptocurrency market will experience excessive supply and competition in the days ahead.
Pointing to the BTC’s depreciation from 2017 all-time highs, Mr. McGlone notes that bitcoin is still in a ‘hungover mode’. The specific trigger that will ignite the top cryptocurrency’s rally to new highs is unknown. But what is known is that the ‘demand vs. supply metrics remain price-positive’.
If BTC copies its previous bullish price moves, combined with a hint of maturation, it would almost take double the time to add another zero to its current spot value. That will take the price to $100,000 in 2025.
Double the Time to Add Another Zero to Bitcoin Is About 2025, Source: Bloomberg
BTC Looking To Top $14,000 By Year-End
Further in the analysis, Bloomberg’s senior commodity strategist makes a case for bitcoin price hitting it’s 2019 high of $14,000 by the end of 2020.
Bitcoin Price Approaching $14,000 by This Year-End, Source: Bloomberg
Mike complements his above call by illustrating how institutional investor-focused Grayscale Bitcoin Trust(GBTC) will keep on buying more BTC until it’s stash size reaches 500,000. This is a significant forecast from GBTC’s previous trend.
A year ago, this direct indicator of investor demand held less than half that amount. Inflows in GBTC, the largest exchange traded product, absorbed about 70% of new Bitcoin supply in 3Q, we calculate.
While talking further about his BTC at $14,000 forecast this year, Mr.McGlone included the ’30-day average of Bitcoin active addresses from Coinmetrics’. He said that BTC active addresses were ‘a leading indicator of the Bitcoin recovery in 2019’.
Looking at the current trend of Bitcoin wallet addresses Mike said that the trend points to a price point that is closer to the $15,000 mark than $10,500 (as on October 2). ‘Unless these gauges reverse, it’s unlikely the price will decline’, the BI commodity strategist said.
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