Michael McGlone, Senior Commodity Strategist at Bloomberg Intelligence, recently reaffirmed his $100,000 price forecast for Bitcoin and sees $5,000 for Ethereum as the path of least resistance. The analyst believes that the crypto market will thrive as a “refreshed bull market.”
The analyst’s price predictions were discussed in the September issue of Bloomberg Crypto Outlook, which was published on Friday, September 3.
In the publication, Mike McGlone shared his predictions for Bitcoin and Ethereum, confirming the prediction of a Bitcoin price of $100,000 that has been in the pipeline for some time.
We see Ethereum on course to $5,000 and Bitcoin at $100,000. Portfolios with a combination of gold and bonds look increasingly naked unless Bitcoin and Ethereum come into the mix.
The analyst also predicted a bull market:
Crypto assets appear to be in a revived and refreshed bull market, with the benefit of a steep discount from previous highs early in the second half of the year.
The price of ETH is on the rise
McGlone explained that the “diminishing supply” of ETH is driving up the price as demand rises, highlighting that Ethereum is the main denominator for NFTs, which are reportedly “gaining traction.”
The analyst discussed the
accelerating downward trend in new Ethereum supply as a result of the protocol change that drove up costs in early August.
He also confirmed that
the 52-week rate of change in the amount of new Ethereum compared to the total amount of Ethereum outstanding is on track to fall below 4%.
Mike McGlone continued in the release by saying that $100,000 for Bitcoin is
is very likely, especially after last year’s supply cut.
The years following the cryptocurrency saw the most appreciation, and 4x in 2021 would be pretty tame for the No. 1 cryptocurrency, compared to 55x in 2013 and 15x in 2017.
The Bloomberg analyst stated:
After surviving the correctiont have, crypto assets are now poised to thrive.
Are these price predictions consistent with recent activity?
It has been predicted for a while that bitcoin will eventually reach $100,000. Well, Bitcoin activity over the past year may suggest that these price predictions are not too far-fetched.
Bitcoin reached $50,000 for the first time in early 2021. The cryptocurrency has one of the most volatile trading histories and the price of the coin has experienced a series of bubbles since its inception in 2009. Since 2009, the price of a single bitcoin has increased by over 1000 percent.
The same Bloomberg analyst who confirmed Bitcoin’s $100,000 price, Mike McGlone, predicted earlier this year that the coin will reach $100,000 in 2021, but then drop to $20,000. That’s likely given the coin’s volatile history, which has seen its price halve in 2012, 2016 and 2020.
The halving schedule is not expected to end until 2140, when the last 21 million coins will be issued. Until that time, traders should be aware of possible bisection years and consider the volatile market when placing their trades.