Bloomberg’s chief commodities expert explains why bitcoin has continued to hit $100,000 this year, despite the correction and what has been underestimated about BTC
Mike McGlone, a leading commodity strategist, gives a reason why the major cryptocurrency has a chance of reaching the $100,000 price line by the end of the year, despite the current Bitcoin correction.
He admits that there is one important thing about Bitcoin that has been underestimated this year:
Bloomberg Intelligence Lord save her He says he underestimated the reallocation of capital from #Went to me # bitcoin BTC dollars and Ethereum ETH dollar this year.
Check his Bitcoin price predictions with Tweet embed Here! – https://t.co/P6l8xoXIfc pic.twitter.com/mkl6CRRQ5B
– Stansberry Research (Stansberry) September 21, 2021
Money keeps flowing from gold to bitcoin
In his recent interview with Stansberry Research, McGlone admitted that he underestimated one thing about cryptocurrency and gold. In particular: How many funds are pouring in gold and converting into Bitcoin and Ethereum.
For a Bloomberg expert, this means that the two leading cryptocurrencies are grabbing gold. Bitcoin does this in particular because it has a very limited supply of 21 million coins with less than three million left to mine for gold with an unlimited supply.
“Authorities Plan to Maintain Unlimited Fiat Supply,” BTC Could Reach $100K
Mike McGlone believes that the Federal Reserve and the US government are planning to do their best to maintain the unlimited supply of fiat currency by tapering off and provide other types of financial stimulus to businesses and private individuals.
In this Bitcoin struggle, with limited supply, and fiat currencies with potentially unlimited supply, Bitcoin is likely to win, according to a tweet from a commodity strategist at Bloomberg.
He added that a lot of investors are either moving their money from gold to bitcoin or ethereum or putting bitcoin and ethereum in the same gold basket.
McGlone shared that in 2021, gold fell 7%, Bitcoin rose nearly 70%, and Ethereum rose nearly 400%.
Therefore, the main cryptocurrency may still reach $100,000 by the end of this year, despite the massive correction it is facing at the moment.
Bitcoin difficulty rises 3.16%
The difficulty of verifying bitcoin transactions saw another increase: it rose by 3.16%. This is the fifth consecutive increase this year. Overall, the Bitcoin hash rate continues to recover after the Chinese government imposed a ban on crypto mining on miners in May, forcing many of them to leave for crypto-friendly locations with cheap energy, such as Canada, the United States and Kazakhstan.