Bullish Bloomberg report shows: This is how Bitcoin could rise to $180,000

July 9, 2021

Bullish Bloomberg report shows

Bitcoin is currently depreciating and struggling to stay above $32,000. Commodity strategist Mike McGlone, however, sees great opportunities for the number 1 cryptocurrency in his new July newsletter.

One Bitcoin - 100 times more precious than an ounce of gold

In the short term, calls for Bitcoin to drop below 25,000 dollars are currently being heard again - but in the long term, the Bitcoin price will be worth a hundred times more than an ounce of gold. This assessment is shared by "Bloomberg Intelligence" analyst Mike McGlone in his July 2021 report. A quick calculation: An ounce of gold currently costs $1,812.25, according to www.goldpreis.de. That times 100 gives a bitcoin price of $181,225. McGlone explains:

   "Bitcoin could be more than a digital version of gold. One possible path for the bitcoin price is to stabilise around 100 times an ounce of gold and for volatility to resume its downward trend as past patterns repeat."

To that end, McGlone shows a chart that provides a reason why bitcoin could continue to rise relative to the precious metal: Bitcoin's 260-day volatility appears to be in an early recovery phase after hitting its lowest level ever against gold in December. The analyst:

   "In late 2016, this relative risk measure formed a similar bottom as the bitcoin-to-gold ratio broke through 1x resistance on its way to 10x in 2017."

The second half of the year will be bullish

At the moment, most retail investors and also many analysts are trending bearish though. However, according to the July analysis, the second half of 2021 will be very different for the crypto markets: The markets will enter a "more mature phase" - and Bitcoin will "regain its shine".

McGlone cites as his reasoning: 'The mainstream migration trend seems pretty strong, especially if exchange-traded funds in Canada and the long waiting list in the US are anything to go by. Bitcoin's volatility, on the other hand, the analyst sees falling. He writes:

   "That giant sucking sound could be volatility saying goodbye. Bitcoin is going mainstream, with a rising price curve and declining volatility, in our opinion."

As such, he said, bitcoin volatility is well poised to resume its general downward trend since the early days at the start of the second half of the year.

McGlone's outlook for Ethereum

The newsletter also has a bullish outlook for Ethereum: according to it, Ethereum could experience a similar parabolic performance to Bitcoin in 2017.

   "The go-to platform for cryptos and decentralised finance - Ethereum - appears at a discount within a bull market and could consolidate at $2,000-$4,000 for a while. Much like Bitcoin in 2017, Ethereum has flushed out excessive speculation, while the increase in addresses used reflects the increasing digitisation of money."

Similar to Ethereum earlier in the year, Bitcoin started 2017 at around $1,000 and peaked just below $20,000. According to McGlone, Ethereum could remain in the $2,000-$4,000 range through October and maintain a "Bitcoin-like" trajectory for 2017.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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