Bitcoin price rises sharply in price and can record price gains. The picture shows a price curve and stacked Bitcoins.
The leading commodity strategist of Bloomberg Intelligence, Mike McGlone, is of the opinion that the average annual prices of gold and Bitcoin will rise massively in the next year. By 2021, McGlone expects gold to reach $2,000 and Bitcoin to reach the $20,000 ATH of 2017.
Bitcoin still this year at USD 20,000?
In his recent tweet, he stated that the current bull market should be strengthened by improving fundamentals and technical fundamentals.
Pendulum Swings Favorably Toward $2,000 #Gold, $20,000 Bitcoin Profit average prices are on pace to reach $2,000 an ounce for gold and $20,000 for Bitcoin in 2021 Refreshed bull markets in the quasi-currencies, with improving fundamental and technical underpinnings….. pic.twitter.com/Xgbyfmstzo
– Mike McGlone (@mikemcglone11) November 9, 2020
Earlier this year, McGlone also predicted that Bitcoin would reach the $13,000 mark and that Bitcoin’s volatility would continue to decrease. Bitcoin broke through the $13,000 mark on October 22, before continuing its rise to reach $15,863 on November 6.
Institutional investors drive demand
The current Bitcoin rally is believed to be driven by a massive inflow of institutional funds into the Bitcoin market – from giants like Grayscale and Square to funds from private companies looking to acquire Bitcoin as a reserve currency.
This morning trader Willy Woo twittered that Bitcoin is being absorbed by „new smart money“, i.e. people with high equity in Woo’s definition.
Best of all we are not just seeing smart money flow in, it’s NEW smart money.
Orange line is the rate of new investors coming in per hour previously unseen before on the blockchain.
It’s seriously bullish.
Another killer chart by @glassnode. pic.twitter.com/ZXk95ksx3b
– Willy Woo (@woonomic) November 9, 2020
In addition, JP Morgan has announced that institutional players are currently more interested in investing funds in Bitcoin than in gold.
To make matters worse, the well-known Bitcoin hater Nouriel Roubini has shocked the community by taking a step to support BTC.
In an interview, he explained that although Bitcoin is still not a currency for him, it can be used as a partial store of value because of its fixed stock. Unlike the USD, total BTC can never be increased.
Shortly afterwards, however, he twittered that Bitcoin was still a pipe dream for him.
Bitcoin prepares for the next bull run
Slowly even the big skeptics are beginning to understand what is actually behind Bitcoin. After almost 11 years, BTC is slowly becoming a recognized financial product. In the meantime, there is no way around BTC when it comes to diversifying your own portfolio.
Experts have been advising for years to invest a certain part of their portfolio in Bitcoin. BTC behaves differently than many traditional financial products and is also a technological revolution.
There is much more behind BTC than many people see at first glance. It is simply far too early to talk about a globally recognized means of payment or even money. Bitcoin will remain under the radar for a few more years.
With increasing interest and decreasing supply of new BTCs, the price will continue to rise in the long run and reach new all-time highs. Once Bitcoin reaches the level of gold, it will become more interesting as a means of payment. Because from that point on, volatility will be much lower than it is currently.
In addition, there will also be a major technical development to make BTC not only accessible to the masses, but to scale it sufficiently. Then other industries will also become aware of this and use Bitcoin as micropayments. One possible field is the Internet of Things (IoT).
Even the first attempts to send transactions automatically between machines and devices were successful with Lightning. However, it will still take years until the technology is ready. We are curious and keep you up to date as always.