3 Reasons Bitcoin May Hit $ 100,000 This Year, Says Bloomberg Senior Analyst

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The number of people believing bitcoin could surpass $ 100,000 by the end of the year continues to grow, the latest being Bloomberg’s senior commodities strategist – Mike McGlone. Describing the rising mass adoption, declining active offer, among other reasons, McGlone predicted that BTC could more than double in value over the next three months.

$ 100,000 BTC: Bloomberg

This year has already been a wild roller coaster when it comes to the price of BTC, which rose from less than $ 30,000 to over $ 60,000 for a new all-time high in a matter of months before plummeting to its level. entry of 2021.

Since those dark days in July, he has earned around $ 20,000 and currently sits just under $ 50,000. And, although there are less than four months to go until the end of the year, predictions of a more than 100% rise against the dollar during this time frame continue to mount.

Bloomberg’s Mike McGlone also joined this movement, describing a few reasons. First, he touched on the historical trends in BTC trading before addressing the declining supply of the main cryptocurrency.

Bitcoin price chart. Source: Bloomberg

This can be viewed from several angles. The speed of creating new bitcoin declines every four years after an event called halving. After the last (third) in 2020, the rate has now come down to 6.25 BTC per block.

We can also add the three million pieces considered lost and inaccessible. Additionally, long-term holders appear determined to hold onto their bitcoin holdings and refuse to sell even when the price drops like it did earlier this month.

This also coincides to a large extent with the stock-flow model. Looking at the stock as the size of existing reserves (or stocks) and the flow as the annual supply of BTC to the market, the S2F also envisions a price of $ 100,000 per coin by the end of the year. year.

Adoption also has a role

McGlone’s third reasoning – increasing adoption – works in conjunction with decreasing supply. Basic economics dictate that if the supply of an asset decreases, while demand remains the same or increases, the price should, in theory, increase as well.

And, the demand for the main cryptocurrency has indeed increased in recent times. We have giant companies spending billions of dollars on it, some of which have committed not to sell any portion.

Institutional investors continue to pressure big banks to provide them with regulated venues where they can receive BTC exposure. The AUM in Grayscale’s Bitcoin Trust has increased tenfold since late 2019.

As such, it’s not all that surprising that so many different people – from Jordan Belfort, Adam Back, Tom Lee to CEO of Chainalysis believe that bitcoin could indeed enter six-figure price territory by the time. end of 2021.

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