Bitcoin (BTC) has hit high prices that have not been seen in a long time. Currently, the price is between $ 17,000 and $ 18,500 before the next step is decided. Gold recently broke its all-time high in US dollars, topping $ 2,000 an ounce, before pulling back and consolidating at that level. Bloomberg Intelligence strategist Mike McGlone believes the same thing could happen to BTC.
“In the short term, $ 20,000 is a good resistance,” McGlone said in an interview with Bloomberg on Wednesday.
“I’m afraid it will probably do the same thing as gold. It hit $ 2,000 and has since consolidated in a bull market.”
Bitcoin rose to just under $ 18,500 on Tuesday before falling to $ 17,200 shortly after, according to TradingView.com. Since then, the asset has been trading sideways and consolidating between these two levels. Long term McGlone expects Bitcoin to see a major upward trend in the coming years. He explained:
“The key factor for Bitcoin this year is very simple: you just added a one to the beginning of the number. Remember, it was about $ 7,000 at the end of last year. Which worries me when you look at the performance in the Looking at the past, this may be. As a clue to the future, they could add a zero to the end of the number in the next year or two. “
With a reference value of $ 7,000 in late 2019, Bitcoin added a one to that number, which equates to $ 17,000. If we add a zero of $ 17,000, we get a future forecast of $ 170,000. Bitcoin had already passed the $ 18,000 mark during McGlone’s interview. So adding a zero could mean a future price of $ 180,000.
McGlone touched on other important points during the short segment, including pointing out Bitcoin price fluctuations. “Bitcoin is becoming the digital version of gold”, explained. “One major point we’re seeing this year is that Bitcoin’s volatility has decreased,” he said. “In fact, it’s the lowest ever compared to gold.”
The strategist also explained Bitcoin’s low volatility compared to the Nasdaq, a stock index of the conventional market. “All other risk-weighted assets in the world have increased their volatility, while Bitcoin has decreased.”
McGlone also mentioned The “institutional FOMO” in Bitcoin goes hand in hand with printing money. Several established financial players have bought large amounts of Bitcoin this year, including Jack Dorsey’s MicroStrategy and Square.