Bloomberg Intelligence analyst Mike McGlone said in an interview that there is no way to stop Bitcoin’s appreciation.
According to Bloomberg analyst Mike McGlone, there’s nothing that can stop the appreciation of Bitcoin’s value. The statements were made during an interview with Kitko News last Thursday. He also said that cryptomoney is becoming more and more like gold.
This last point, he said, generates heated debates between Bitcoin Bank enthusiasts on the one hand and gold enthusiasts on the other. However, for the analyst it’s quite clear that Bitcoin’s maturity will lead to it being a widely used store of value.
It should be noted that, since its appearance a decade ago, the value of Bitcoin has moved in a constant appreciation. Taking this behavior as a reference, plus the current level of adoption and importance of this cryptomone, for the analyst the price will continue to exceed its own limits through time.
Nothing will stop the appreciation of the value of Bitcoin
The appreciation of Bitcoin, according to McGlone, is practically difficult to stop due to many factors. Among the most common are a limited supply of coins, which, coupled with a growing adoption for hoarding, will help raise their price permanently.
„The key issue about Bitcoin, is that I don’t see anything that can stop it from continuing to do what it has done since it appeared, to appreciate itself,“ the analyst said.
At the same time, he highlights the qualities of the most popular of the crypto currency to „add zeros“ to its value. First, he says, from 100 to 1,000, then to 10,000. He also highlights that during the last three years, the price of it has consolidated to a level that has considerably lowered the danger of its volatility.
On the other hand, McGlone assures that, as Bitcoin matures, it will become more similar to gold. His statements coincide with those of Mike Novogratz, CEO of Galaxy, who says that this crypt currency is digital gold and as such, is being used by large investors in growing numbers.
During an interview with Kitko News, Bloomberg Intelligence analyst Mike McGlone claims that nothing can stop Bitcoin’s appreciation. Source: KitkoNews
A very close relationship
The fact that Bitcoin is becoming more like gold than stocks in its appreciation and consolidation trajectory is, according to the analyst, a positive thing. This is affirmed by the fact that the latter are high-risk assets, while gold is a reserve of value.
Similarly, he highlights that the similarities in behavior between gold and Bitcoin are many. The correlation between both during this year has been closer than ever before, he underlines, since the same forces that put gold on the rise, are the ones that reinforce Bitcoin’s appreciation.
Consequently, he assures that some factors such as the unprecedented debt on the GDP, the quantitative easing and the negative rates have an influence. „All this makes both gold and Bitcoin extremely attractive to investors.
Finally, the Bloomberg analyst finished off by assuring that the current high price increases demand at the same time. However, the supply of Bitcoin is not growing or limited, which creates a circle of increased value appreciation.
So far, it’s believed that Bitcoin could reach resistance at $14,000, but McGlone claims that if Joe Biden wins the U.S. election, the price could go much higher in the short term.
Bitcoin price history. Source: TradingViewHistorical Bitcoin Price. Source: TradingView
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Facts to keep in mind
According to analyst McGlone, Bitcoin’s signs of maturity make it look more and more like gold.
He explains that the same forces that push up the price of gold are the same forces that push up the value of Bitcoin.
Considering the growing adoption, as well as the historical behavior of its price, McGlone doesn’t see how the appreciation of Bitcoin can be stopped.
As much as it resembles gold, the pioneering crypto currency distances itself more from stocks, which are high-risk assets.