- Bloomberg’s senior commodity strategist Mike McGlone insists that the current bull run will see Bitcoin reach highs of $100,000 with little resistance on its way.
- The weekend has seen Bitcoin solidify its position above the critical $50,000 level, fueling a greater bullish sentiment.
Bitcoin broke a key barrier late in the week and has since pushed higher above the $50,000 psychological position. At the time of press, Bitcoin is exchanging for about $50,300 with its market cap only a couple of millions away from reaching an iconic $1 trillion. According to Bloomberg’s senior commodity strategist Mike McGlone, Bitcoin is likely to double from this level. The analyst believes that the bull market is revived and refreshed, and expects Bitcoin to face little resistance on its way to a new all-time high of $100,000.
Bitcoin and the wider market at large are staging a comeback after struggling for months after corrections. After reaching an ATH of $64,000 in Q1, Bitcoin drifted to as low as $29,000. McGlone writes;
After enduring a gut-wrenching correction, we see the crypto market more likely to resume its upward trajectory than drop below the 2Q lows. What could stop Bitcoin and Ethereum from achieving record highs in 2H may be the more elusive question. Increasing demand and adoption are facing diminishing supply.
The analyst believes that the bulls are in control and as such the digital asset will face little resistance on its rise to a record high of $100,000. His prediction aligns with predictions from other notable analysts including the stock-to-flow model creator PlanB, investor and Bitcoin maximalist Anthony Pompliano and even financial services corporation Fidelity Investments which has compared the current Bitcoin bull run to the gold rush of the 1970s.
The revived optimism is driven by some fundamental developments recorded in the last few days and weeks. The last few days have seen the average transactions per block show a pickup in chain movement. In addition, as recorded by publicly traded Coinbase, there have been record BTC outflows.
McGlone backs ETH to reach $5,000
McGlone is not only bullish on Bitcoin but has also backed Ethereum to continue climbing. The second-largest cryptocurrency has also revived its bullish momentum. Going into the weekend, the altcoin has climbed above $4,000. According to McGlone, the digital asset is set to reach $5,000.
The analyst’s outlook is well placed as Ethereum continues to record optimistic on-chain data. One of these is the exchange balance. According to on-chain and market data analysis firm CryptoQuant, the ETH exchange balance reserve continues to fall and is at record lows. This has led some analysts to suggest that the market could face a supply shock which will help drive demand and prices.
According to CryptoQuant, the ETH exchange balance reserve continues to decrease, currently only 18.65563 million ETH, accounting for about 15.9% of the total supply. pic.twitter.com/oZxuqJ9VJz
— Wu Blockchain (@WuBlockchain) September 4, 2021
In part, the NFT craze has been a driving force for the recent demand for the altcoin. Additionally, the recent upgrade that set Ethereum as a deflationary asset has so far seen over $700 million worth of ETH burnt, this has made Ethereum a noteworthy and must-have asset for a majority of investors.