Bitcoin (BTC) continues to trade in the $ 35,000 and $ 38,000 range. Despite the recent scare when the digital asset plunged below $ 30,000. Bloomberg Senior Strategist Mike McGlone shared his short and long term price predictions. In his forecast, the strategist argues that the likelihood that Bitcoin will rise is higher than it will fall.
McGlone compared Bitcoin to gold, calling it the best investment. He also believes that the digital asset will outperform the precious metal. Bitcoin was able to do this in 2020 as the global economy came under pressure from the COVID-19 pandemic. Although 2021 was mostly seen as a year of recovery, the economy is developing slowly, which has raised concerns in global markets. In the face of looming inflation, BTC is projected to act as a hedger that will drive its adoption.
By 2025, according to the strategist’s forecasts, BTC will reach $ 100,000. This prediction is shared by many market experts, some of whom believe that this figure will be achieved by the end of the year. At the moment, the strategist expects Bitcoin to reach the $ 60,000 mark and is less likely to fall to $ 20,000.
He builds his forecast on the basis of “similar recovery periods from too cool conditions in the past”. The analyst compared the current market environment to a long phase of Bitcoin consolidation in 2019. Then the coin was able to hold on to fundamental values after the collapse of 2018. Then, for several months, Bitcoin gathered strength and after that resumed its expansion.
The repression of the Chinese authorities negatively affected Bitcoin
The Chinese government’s crackdown on crypto traders and miners has contributed negatively to the trajectory of the market. However, they could not radically shake the situation. Investments in stablecoins began to grow, which indicates that investors are preparing to pump up the digital currency market, and primarily Bitcoin. Although McGlone did not specify exactly when, in his opinion, market capitalization will begin to grow at a more confident pace.
This forecast contradicts other Bloomberg strategists, led by Nikolaos Panigirtzoglou, who expect BTC to drop to $ 25,000. Another bearish person is Guggenheim CIO Scott Minerd. He recently predicted that Bitcoin did not find its bottom and should drop to $ 15,000.
Bitcoin is ready to accelerate
After the upward momentum last week, even pessimists are starting to change their views. After a few weeks of sideways movement, BTC appears to be poised for an upside breakout.
Market analyst Sashimi Nakamoto wrote on the CryptoQuant website:
“If BTC holds in the lower 30K range, shorts will begin to tighten as BTC moves towards the midpoint of the range, which will likely accelerate in the coming days / weeks”.
At the time of publication of the article, BTC has grown by almost 5 percent and, according to our data, is worth just over $ 38,000.