Mike McGlone, senior commodities strategist for Bloomberg Intelligence, believes the price of Bitcoin could exceed the price of an ounce of gold – by around 100 times.
In the July 2021 edition of the Bloomberg Crypto Outlook monthly cryptocurrency newsletter, McGlone said that based on technical analysis, the flagship crypto asset may continue to appreciate against the coveted metal.
“Bitcoin may be more than a digital version of gold. One potential trajectory for the price of Bitcoin is to stabilize around 100 times an ounce of gold and for volatility to resume its downward trajectory, if past patterns repeat themselves.
Our chart illustrates a good reason why the price of crypto could continue to advance against the metal, as Bitcoin’s 260-day volatility appears early in the rally after hitting an all-time low against gold. in December.
At the end of 2016, this measure of relative risk formed a similar bottom, as the Bitcoin / gold ratio broke through resistance by 1x to 10x in 2017. ”
An ounce of gold is currently trading at just over $ 1,800.
Bloomberg Crypto Outlook further indicates that the second half of 2021 will be different for the cryptocurrency market compared to the first half.
“The crypto market is likely entering a more adult phase in 2 hours, and we are seeing Bitcoin regaining its momentum.
The 1H excesses, as exemplified by Dogecoin, have been moderated, and the prevailing migration trend looks quite strong, especially if exchange-traded funds in Canada and the long waitlist in the United States are any guide.
The monthly newsletter adds that the growing adoption of Ethereum is a bullish sign that the second largest crypto asset by market cap could follow Bitcoin’s 2017 trajectory going forward.
“The go-to platform for cryptos and decentralized finance – Ethereum – is showing up cheaply in a bull market and could consolidate for some time between $ 2,000 and $ 4,000. Resembling Bitcoin in 2017, Ethereum flushed out excessive speculation, while the increase in addresses used reflects the accelerating digitization of money …
Similar to Ethereum at the start of this year, the [sic] Bitcoin started 2017 around $ 1,000 and peaked at just below $ 20,000. Ethereum could stay in the $ 2,000 to $ 4,000 range from around May until October and maintain a Bitcoin-like theft plan in 2017. ”
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