Mike McGlone, Senior Commodity Strategist at Bloomberg, is convinced Bitcoin will continue to appreciate thanks to its fixed supply coupled with increasing demand.

“I don’t see what [could] make it stop doing what [it’s] been doing for the last 10 years. And that’s going up”, he told Cointelegraph in a recent interview.

McGlone sees Bitcoin’s capped supply as the main feature. He said that this potentially makes it a better store of value than gold, the total amount of which is unknown.

Given the fixed supply, Bitcoin is going to appreciate as demand for it increases. McGlone points at the growing number of active Bitcoin addresses and the increasing flow of Bitcoin into regulated exchanges as two main factors proving the increasing demand for Bitcoin.

Lastly, Bitcoin’s decreasing volatility compared to the Nasdaq index is another indicator pointing at the growing maturity of Bitcoin as an asset class.

When asked about Pantera Capital price prediction, according to which Bitcoin may reach $115,000 in one year from now, McGlone remains skeptical. According to the analyst, Bitcoin is too mature for this kind of massive rally to happen in such a short time.

“Bitcoin 10x? Maybe over 10 years, that makes a lot of sense”, he said.

Check out  the full interview on our Youtube channel and don’t forget to subscribe!

Updated: 10-9-2020

Bloomberg: Biden Election Would Be Good For Bitcoin, Bad For DeFi

Biden’s administration may not have the same “hands-off” approach to crypto regulation, contends Bloomberg.

The latest Bloomberg crypto newsletter contends that the election of Joe Biden would bring greater mainstream adoption of Bitcoin (BTC), including a potential ETF approval. Further, it referred to the Trump administration’s policies with regard to crypto as “hands-off”:

“A potential Joe Biden presidency should shine favor on further appreciation in the price of Bitcoin, in our view. New leadership may change the hands-off policy of the Trump administration — to the detriment of the broader crypto market — and nudge the firstborn benchmark toward the mainstream, improving chances for an ETF.”

Considering that yesterday, the Department of Justice published a 70-page Cryptocurrency: An Enforcement Framework, the newsletter likely was written prior to that.

The author purports that the same forces would hamper DeFi’s growth. Both conclusions are based on the assumption that a “Democratic sweep” would potentially enable greater regulatory clarity for the crypto space.

The DeFi space has exploded this year in a completely unregulated environment. It is no coincidence that the perpetrators behind the KuCoin hack have been laundering their illicit proceeds through the biggest decentralized exchange, Uniswap.

Bloomberg asserts that regardless of the election’s outcome, “Bitcoin’s price will keep going up no matter who’s elected president, but at a moderating pace”. It also concludes that if Bitcoin’s price continues to grow during the next presidential term at even half of the pace it enjoyed from 2016 to 2020, it would reach $80,000 by 2024:

“Seemingly unstoppable trends in U.S. debt-to-GDP, quantitative easing (QE) and the increasing Bitcoin hash rate indicate a crypto price more likely to keep advancing during the next presidential administration, in our view. About half the 1,400% gain since the 2016 vote would get the Bitcoin price toward $80,000 in 2024.”

Yesterday, Square made an announcement that it acquired $50 million worth of Bitcoin, signifying the increased adoption of the asset by the corporate sector.

Updated: 11-16-2020

$1T Market Cap Is ‘Next Big Resistance’ For Bitcoin — Bloomberg Analyst

Bitcoin price has a clear run to an order of magnitude in gains, Mike McGlone argues as $16,000 is quickly reclaimed.

Bitcoin (BTC) hitting its all-time highs of $20,000 again is not the end but the start of its explosion to a $1 trillion asset, a senior Bloomberg analyst said.

In a tweet on Monday, as BTC/USD reclaimed $16,000, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, delivered a fresh bullish forecast for the largest cryptocurrency.

Bloomberg Intelligence: BTC Will Keep Rising In 2021

Bitcoin saw lower levels over the weekend, briefly dipping to $15,800 before conspicuously rising on Monday to see highs of $16,400 at press time.

“$20,000 #Bitcoin Is Primary Hurdle Toward $1 Trillion Market Cap — The digital version of #gold but with more-limited supply and a history of adding zeros, appears to be in an early price-discovery stage and may simply continue its ascent in 2021,” McGlone wrote.

“Mainstream Adoption Is Rising.”

An accompanying chart described a $1 trillion market capitalization as the “next big resistance” for Bitcoin.

McGlone is known for his increasingly positive Bitcoin outlooks. As Cointelegraph reported, he argued in September that Bitcoin should, in fact, trade at $15,000 based on active addresses, something which soon became reality.

Brandt Signals Bull Run Still In Early Stages

McGlone is far from the only markets veteran doubling down on the lucrative prospects for Bitcoin in its current bull run.

On Monday, trader Peter Brandt suggested that based on previous bull runs from 2013 and 2017, the current price performance was only the start of the cycle.

Updated: 11-16-2020

Citigroup Says Dollar May Drop By 20% Next Year

The dollar is likely to begin a drop of as much as 20% in 2021 should Covid-19 vaccines become widely distributed and help to revive global trade and economic growth, according to Citigroup Inc.

“Vaccine distribution we believe will check off all of our bear market signposts, allowing the dollar to follow a similar path to that it experienced from the early to mid-2000s” when the currency started a multi-year downturn, Citigroup strategists including Calvin Tse wrote in a report Monday.

The Bloomberg dollar index, which has fallen about 11% from its March peak, came under additional pressure Monday following news that Moderna Inc.’s Covid-19 vaccine was effective in a clinical trial, weighing on demand for havens like the greenback, the yen and Treasuries.

Strategists have been positing for months that the U.S. election, vaccine breakthroughs and Federal Reserve policy could deal a serious blow to the currency. The election wasn’t ultimately the catalyst for a significant plunge, but Citigroup says the broad macroeconomic backdrop will be a bigger driver of the dollar going forward.

Rotation Expectation

The bank expects that in addition to the impact from vaccine breakthroughs, the dollar will suffer as the Fed will remain dovish as the global economy normalizes, the rest of the world is likely to grow at a faster pace and as investors rotate out of U.S. assets and into international assets.

And “should the U.S. yield curve steepen as inflation expectations rise, this will incentivize investors” to hedge currency exposure, they said. “Given this setup, there is the potential for the dollar’s losses to be front-loaded,” with the currency spiraling lower sooner.

Citigroup is more bearish than the consensus of strategists who forecast a gauge of the currency will weaken by about 3% through the end of next year. A Bloomberg measure of the greenback is down 1.8% this month and has weakened for six of the last seven. It was down Monday.

The biggest annual decline for Intercontinental Exchange Inc.’s widely watched dollar index, DXY, came in 1985, when it sank 18.5%.

Citigroup notes that in 2001, the catalyst that kicked off the multi-year downtrend in the greenback was China’s joining of the World Trade Organization. That “spurred a wave of globalization, pushing global trade volumes higher, leaving behind the closed U.S. economy that had a much lower beta to global growth.”

“There is plenty of reason to be optimistic,” on vaccine developments, the strategists said. The distribution “will catalyze the next leg lower in the structural USD downtrend we expect.”