Bitcoin can reach as high as $400k in a long super bull run accelerated by institutional investment, according to a senior analyst at Bloomberg Intelligence. The former Bitcoin critic gave this opinion after putting forward an interesting analysis of the cryptocurrency’s current calendar year future.
$400k is quite a long shot from the current price index of around $55k at press time. The cryptocurrency will need to increase more than 700% from current levels to get this high and result in a massive market capitalization of around $7 trillion. However, according to Mike McGlone, the senior Bloomberg analyst in question, the level may be achieved as more and more institutions begin to view the cryptocurrency as risk-off asset against inflation and future dollar depreciation due to the wide range of stimulus packages being announced by governments around the world.
He tweeted:
[Bitcoin is] Well on its way to becoming a global digital reserve asset, a maturation leap in 2021 may be transitioning Bitcoin toward a risk-off asset, in our view,
This is among the highest predictions for the price index in recent memory apart from the completely outlandish $1 million predictions just to drum up interest in the sector. According to the most popular price prediction model Stock-to-flow analysis, the cryptocurrency may get as high as $288k by the end of this year alone. The prediction by Bloomberg’s McGlone goes even beyond that at $400k level which appears quite unrealistic at the moment because of the massive market capitalization needed to achieve that level.
However, one cannot understate the massive sums of money available in institutional investors’ hands. They are basically multi-trillion dollar banks with a lot of power and influence within the investing community. The trends that they bring and invest in generally catch up and their money works wonders too. Right now, there is considerable interest from the institutions but they are apparently taking their time understanding it. Until now, only Bitcoin superfunds are investing big in Bitcoin including companies like Microstrategy and Grayscale. However, once the idea gets more mainstream in the coming months, more institutions are expected to splash the cash on the sector, possibly resulting in a mega price boom. While $400k might be too big to be achieved during this bull cycle, experts do believe that anywhere between $100k-$150k might be a realistic target for the digital asset by the year’s end. But, as usual, there are no upper or lower guarantees because of course, its Bitcoin.
Image source: Marco Verch Professional under CC
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