The Bloomberg BTC strategist’s forecast says that the coin may reach $ 170 thousand by the end of the year. A number of indicators indicate that Bitcoin (BTC) is displacing gold as the main safe asset. This could set the stage for wider adoption of digital currency in the Main Market, according to Mike McGlone, senior commodities strategist at Bloomberg.
Bloomberg BTC Strategist’s Forecast: What Does McGlone Think?
McGlone tweeted on Monday that the battle between safe assets is starting to favor Bitcoin. The expert explained:
Bloomberg BTC Price Forecast: Bitcoin at $ 170K? Crypto Price Prediction 2021 https://t.co/bUMDsf3uQx
— The City Telegraph (@city_telegraph) March 9, 2021
“Gold will always have a place in jewelry and coin collections. But most indicators point to an accelerating rate of replacement of the precious metal with bitcoin as a store of value in investor portfolios. This is a significant achievement for BTC, as it demonstrates its massive adoption. ”
The chart accompanying the tweet shows Bitcoin’s strong dominance over gold since mid-2020. And this while the total amount of known holdings of gold ETFs has declined. In other words, Bitcoin seems to be gaining popularity among institutional investors at the expense of gold. The chart also highlights the sharp decline in bitcoin volatility versus gold volatility. Another argument in favor of BTC.
McGlone has long argued that Bitcoin will eventually become the preferred safe haven of investors. And this is already noticeable, since activity in “digital gold” continues to gain momentum. In early February, a Bloomberg strategist predicted that BTC would quickly reach $ 50K as investors move funds from bullion to digital assets. The main cryptocurrency hit the $ 50,000 mark in less than two weeks.
In November 2020, McGlone also predicted that Bitcoin could reach $ 170,000 over the next two years. So far this year, the battle for the title of a popular haven asset between gold and bitcoin has been heavily favored by BTC. As of Monday, 1 Bitcoin was worth 30.3 ounces of gold. The figure peaked at 32.1 in February, according to MarketWatch.
The BTC spot price is currently trading above $ 51,100, up 1.3% over the same day. Gold, meanwhile, fell 0.9% to $ 1,683 per troy ounce in the Comex division of the New York Mercantile Exchange.