Mike McGlone, a senior commodities strategist at Bloomberg Intelligence believes that "if Bitcoin caught up with Ethereum's performance this year, the price of the number one cryptocurrency would approach $ 100,000."
When one looks at the year-to-date market performance of Ethereum (ETH), it has outperformed Bitcoin (BTC) by a commendable stretch. Ether's returns were up more than 320% versus Bitcoin's 54% returns. Even though Bitcoin is lagging behind on issues, McGlone is confident that given time, Bitcoin will catch up with Ether's gains and this could push its price per unit to $ 100,000.
Bitcoin breaks the $ 46k mark
In one of his tweets On August 9, the analyst stated that “Ethereum in 2021 is a guide for Bitcoin to reach $ 100,000…” His tweet came at the right time just as the price of BTC hit the $ 46,000 mark.
The chart above shows that BTC rises to $ 46,000 after 18% weekly gains.
McGlone didn't focus so much on establishing the specific factors that would drive BTC to match ETH's annual earnings; However, following his previous report on cryptocurrencies, he mentioned several catalysts that could drive crypto prices towards the six-figure club. According to the report, the analyst notes:
“About 80% of Bitcoin and Ethereum, most of the performance of the Bloomberg Galaxy Crypto Index (BGCI) comes from the broader perception of first-born crypto as a global digital reserve asset, in addition to the acceleration of the digitization of fintech and the monetary system ”.
Trillions of dollars intact
Bitcoin enthusiasts are confident that the cryptocurrency will compete with the US dollar to assert its position as a global reserve asset. Cryptocurrency advocates are looking towards the cryptocurrency's fixed supply cap that makes Bitcoin sound better as a global reserve asset, especially considering that in 2020 alone the Federal Reserve printed $ 3.1 trillion. The proposed infrastructure bill currently under discussion in Washington is estimated to accumulate an additional quarter of a trillion dollars in debt, but incorporating Bitcoin as a reserve asset could fix this.
The best evidence that Bitcoin soared above the dollar was last year's performance, where it closed 260% higher. This is an indicator that investors leaned toward it as a tool against dollar-driven inflation.
Recent years have seen an increase in demand for Bitcoin among institutional investors such as foundations, pension funds, and global sovereign wealth funds. However, even with the trillions of dollars in reserves, they still cannot invest it in the crypto ecosystem, until the crypto regulations are clearer.