Bloomberg senior strategist calls Bitcoin a global reserve asset on the path to $100K. In like manner, Bloomberg’s senior commodities strategist Mike McGlone reiterates his call for six-figure Bitcoin (BTC). Arguing that the first cryptocurrency is well on its way to becoming a global reserve asset alongside the US dollar.
According to Bloomberg’s September edition of Crypto Outlook, $100,000 BTC and $5,000 Ether (ETH) offer the “lowest possible resistance”. After the two assets survived more than 50% correction during the summer.
Pivotal role in the global financial system
According to McGlone, the second half of 2021 will be the last instance of crypto-asset bullishness. The market has been revived and is enjoying a steep discount from former highs. Portfolios without exposure to bitcoin or ethereum are deemed ‘naked’. As demonstrated by the relative underperformance of gold and government bonds.
Although predictions of a six-figure Bitcoin aren’t new. McGlone is predicting that Bitcoin will fill a pivotal role in the global financial system. ‘We believe bitcoin is the digital future”, McGlone said after explaining the dollar has gained more than 300% in value against major peers since President Nixon eliminated the greenback’s gold peg in 1971.
Bitcoin’s most ardent supporters have long believed that the cryptocurrency would mature into a global currency. The premise behind their conviction is Bitcoin’s superior monetary policy in an era where central banks have inflated the money supply. Resulting in wealth disparities and higher prices.
$2.4 trillion on Friday
Bitcoin’s value proposition has also been highly visible within the institutional investment, with JPMorgan Chase and BlackRock debating that BTC is corroding gold’s market share as a storehold of wealth.
As Bitcoin price climbed to $51,000 on Friday, the broader market rally surpassed three-month highs. According to the latest figures, the total market cap of all cryptos hit $2.4 trillion on Friday, up from a low of approximately $1.2 trillion in mid-July.