Analyst Mike McGlone’s optimism comes after a dramatic decline in the value of major crypto coins, including Bitcoin.
Bitcoin is currently trading at $45,542 (roughly Rs. 33.54 lakhs)
Bitcoin price has recently seen extreme volatility, but it is likely to surpass $100,000 (roughly Rs. 73.65 lakhs) this year, a Bloomberg analyst said. Mike McGlone tweeted a chart that, he said, showed why Bitcoin can reach the $100,000 mark this year. The commodity strategist says Bitcoin is likely to make a “significant advance in 2021” as more people in the mainstream adopt the world's largest cryptocurrency. He believes if Bitcoin does rally to reach that unprecedented level it will also be because of past Bitcoin trading trends and its declining supply. The Bitcoin protocol mandates that there could be no more coins in supply than 21 million.
McGlone's optimism comes after a dramatic decline in the value of major cryptocurrencies, including Bitcoin. He likely senses that Bitcoin has now corrected its price in the crash in April-May this year and is now poised to surprise everyone with a massive rally.
Currently, Bitcoin is trading at $45,542 (roughly Rs. 33.54 lakhs), according to CoinMarketCap, and it is attempting to break the $50,000 (roughly Rs. 36.83 lakhs) mark. As of September 20 (2:53pm IST), Bitcoin price in India stood at Rs. 36.6 lakhs.
With Bitcoin's supply capped at 21 million coins, McGlone believes that the decreasing supply will act as a driver for increasing the price. This feature has resulted in some claiming that Bitcoin is the best hedge against inflation.
After Bitcoin and Ethereum, the two biggest crypto coins, survived the crash in April–May, the September edition of Bloomberg's Crypto Outlook called a $100,000 Bitcoin and $5,000 (roughly Rs. 3.68 lakhs) Ether the “path of least resistance”.
“Crypto-assets appear in a revived and refreshed bull market with the 2H benefit of a steep discount from previous highs at the start,” wrote McGlone in his blog, referring to the second half of 2021.
Last month, McGlone had insisted that any move by US authorities to regulate the crypto industry is likely to result in pushing Bitcoin's value.
“What, Us Worry? Crypto market expects the US to do the right thing. Any US move to regulate crypto assets is likely to support renewed upward trajectories for Bitcoin and Ethereum,” he had tweeted on August 10.
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