Bitcoin to Hit $400K, Says Bloomberg Analyst

By José Oramas March 29, 2021 In Bitcoin, Crypto News, Institutions

Bitcoin could become a global digital reserve asset, according to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence.

McGlone recently shared on his Twitter account a graph of the Bitcoin annual average price and the bitcoin Liquid Index. As shown below, BTC could reach a potential price of over $400,000 by 2021, considering its price behaviour in the past.

Source: Bloomberg Intelligence.

The Maturation Leap for Bitcoin

McGlone considers Bitcoin’s current bull run a “maturation leap”, which could lead the cryptocurrency to become a risk-off global reserve asset, as more institutional investors are seeking BTC exposure through investment firms.

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.

Mike McGlone

This view is reinforced by a broader institutional interest and adoption. Investment firms, asset managers, and other financial institutions have filed to the Securities and Exchange Commission (SEC) to launch a Bitcoin Exchanged-traded Fund.

An ETF Could Catapult Bitcoin

Analyst Lark Davis believes an ETF could give Bitcoin a boost the same way it did with the first gold ETF in 2003.

Since Bitcoin first appeared 13 years ago, its market cap went from zero to over $1 trillion. If a BTC ETF is approved, the crypto market could experience an even greater boost thanks to accredited investors and institutional capital could flock to the ETF.

José Oramas

José Oramas

José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.

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