The 6 figures back on the table – Mike McGlone, a strategist at Bloomberg, recently drew parallels between the performance of ether (ETH) and bitcoin (BTC
) as the latter’s price crosses $46,000 on August 9, 2021. Bitcoin could, in his view, reach $100,000, if its earnings match those of ether.
Bitcoin to $100,000 by copying ether
“If Bitcoin were to catch up to Ethereum’s performance this year, the price of the number one crypto would approach $100,000.”
Mike McGlone post – Source: Twitter
McGlone did not detail the factors that would allow Bitcoin to match ether’s performance this year. However, he had indicated in his previous analysis that Bitcoin was benefiting from its status as a “global digital reserve asset.”
Bitcoiners believe the king of cryptos can compete with the US dollar. The doyenne of cryptocurrencies would embody a perfect hedge against fiat currency inflation given its limited fixed supply of 21 million units. For comparison, the US Federal Reserve printed $3.1 trillion in 2020 alone.
The Covid-19 pandemic revealed the weaknesses of the traditional monetary system and fiat currencies. It was followed by stimulus packages and excessive money printing to recover in many northern countries. Investors fearing a devaluation of the dollar turned to Bitcoin, allowing it to close 2020 with a 260% annual gain
Institutional investors ready to blow up the BTC pot
<p>Bitcoin has also managed to attract the interest of a growing number of institutional funds. A survey by Goldman Sachs in 2021 shows that these, including pension funds and state funds, are interested in gaining exposure to Bitcoin. However, the lack of clear regulation on cryptocurrencies is a block for accredited investors.
Bitcoin ETFs finally are another important lever that could propel Bitcoin into the six figures. Applications for these exchange traded funds are piling up on the desks of the US SEC. The Commission, however, does not seem to be in a hurry to make a decision on these filings. A recent interview with SEC Chairman Gary Gensler rekindled hopes that a Bitcoin ETF will soon be available on US exchanges. However, this speech has not been followed by any concrete action yet.
Bitcoin is trading at over $45,000 at the time of writing. It has begun a bullish recovery from the last crash in May 2021, when it dropped below $30,000 after hitting an all-time high of over $63,000. Hopes of a $100,000 bitcoin, meanwhile, were rekindled when its price topped $46,000.
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