Mike McGlone, the leading commodity strategist offers a reason why the flagship cryptocurrency still has a chance of reaching the $100,000 price line by the end of the year, despite the current Bitcoin correction.
He admitted that there is one important thing about Bitcoin he has underestimating this year.
Bloomberg Intelligence’s @mikemcglone11 says he underestimated the reallocation of capital from #gold to #bitcoin $BTC and Ethereum $ETH this year.
Check out his bitcoin price prediction with @DanielaCambone here! – https://t.co/P6l8xoXIfc pic.twitter.com/mkl6CRRQ5B— Stansberry Research (@Stansberry) September 21, 2021
Funds keep outflowing gold to enter Bitcoin
In his recent interview with Stansberry Research, McGlone admitted that he had underestimated one thing about crypto and gold. In particular, how much funds keep outflowing gold and get converted in Bitcoin and Ethereum.
For the Bloomberg’s expert this means that the two leading cryptocurrencies are taking over gold. Bitcoin is doing it in particular, since it has a strictly limited supply of 21 million coins with less than three million left to mine versus gold with unlimited supply.
“Authorities plan to keep supply of fiat currency unlimited”, BTC may still hit $100K
Mike McGlone believes that the FED and US government plan to do their utmost to keep up the unlimited supply of fiat currency by tapering and by offering other types of financial stimulus to businesses and average people.
In this struggle of Bitcoin with its limited supply and fiat currencies with their potentially unlimited supply, Bitcoin is likely to win, the commodity strategist of Bloomberg tweeted.
He added that a lot of investors have either been moving their funds from gold to Bitcoin and Ethereum or been putting BTC and ETH in the same basket as gold.
McGlone shared that in 2021, gold has been 7 percent down, Bitcoin is almost 70 percent up and Ethereum is nearly 400 percent up.
Therefore, the flagship 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 has seen another increase – it is 3.16 percent up. That’s the fifth increase in a row this year. Overall, the Bitcoin hashrate keeps recovering after the crypto mining ban the Chinese government imposed on miners in May, forcing many of them to leave for crypto-friendly locations with cheap power, such as Canada, the US and Kazakhstan.