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Bitcoin Bloomberg senior commodity strategist Mike McGlone will continue his bullish push towards $ 50,000 as investors move money from gold to the digital assets.

He believes its volatility could even hit gold by 2024, pushing the price up much further.

In a report McGlone, published Wednesday, explained that BTC is showing strong support at $ 30,000, and that “increasing institutional adoption and the potential for the benchmark to become a global reserve” could push the price up to $ 50,000 or higher.

The report cited evidence that funds have moved from gold to Bitcoin, with an emphasis on accelerating flows to Grayscale Bitcoin Trust (GBTC) and a decline in total known ETF holdings of gold. The investment firm has grown its GBTC fund from 1% to 10% of its “$ 210 billion tracking gold ETFs” in 2020.

“In a world going digital,” he said, “it makes sense to expect more money to go into Bitcoin and away from precious metals.”

McGlone believes investing up to 5% in Bitcoin is becoming an increasingly wise decision:

“In the absence of a major technological glitch, the gold allocators are of the old guard in the first place at risk if the crypto becomes a reserve and Bitcoin becomes more and more cautious as 1-5% of someone’s invested capital. “

A rise in stock market volatility has boded well for gold and bitcoin in the past, the strategist explained, with a combined investment of Bitcoin and gold showing a lower volatility ratio of 260 days (30%) compared to the S&P 500 (35%). ).

Despite this, McGlone believes that the digital asset has the potential for resistance levels to rise to 100 times the resistance levels of gold. The current resistance levels for BTC ($ 40,000) are 22 times that of gold ($ 1,800).

During the bull run of 2017, the Price ratio between Bitcoin and gold shot up from 1x to 15x in a matter of months.

McGlone said Bitcoin is on track to match Gold’s risk level by 2024. In fact, he said Bitcoin could become even less volatile than gold because of the steady supply.

“To reach this milestone, Bitcoin may just have to maintain what it has done: appreciate in price and mature.”

The current 260-day volatility for BTC is 50%, which equates to the 1980 volatility levels of gold.

McGlone also reported Ethereum, claiming that it turns the USD 1,000 resistance level into a support level that is “unlikely” to break. He compared the trend to that seen in the first quarter of 2017, where it rose from $ 10 to above $ 40 before shooting to over $ 1,000 nine months later.