An enormous inflow from gold to Bitcoin has been cited in the market. Bloomberg’s Mike McGlone, the Senior Commodity Strategist bared this out in a newly published analysis. In it, he says Bitcoin is in its “price discovery stage.” Bitcoin’s threshold to gold could surge 100x, bumping it to $50,000 sooner than later.
BTCUSD Chart By TradingView
McGlone’s analytics are not different from many traders who have paid attention to Bitcoin’s price trajectory. Bitcoin’s range-bound price dangling between the $30,000 and $40,000 cage has gained commendable support from institutional investors and global adopters, most of which consider it a store of value. McGlone thinks that these happenings will cause the range-bound price to be broken:
“The support base has risen toward $30,000 on increasing institutional adoption and the potential for the benchmark to become a global reserve asset, outweighing risks of failure. Fintech and greater speculation is the broader crypto-market narrative.”
Altcoins Vs Bitcoin outperformance
Ethereum to Bitcoin outperformance over a one-year period is a show of the dominance of the fintech world, says McGlone.
Putting into perspective what the main goal for the crypto-market is, McGlone writes that “Price discovery appears to be the crypto market’s primary mission, but differentiated by Bitcoin gaining reserve-currency status vs. about 8,000 altcoins, many of which are more closely associated with speculation.”
Institutional interest becoming the foundation of the market
Grayscale has been buying Bitcoin and Ethereum incessantly. This means that investors are in line for their fair share of the coins, positioning both assets for a rerun in the market. For Bitcoin, the organic rise has been on an all-time high.
Investment interest from highly respected figures in the fintech market is poised to organically propel Bitcoin into the global scale. The organic adoption that Bitcoin enjoys has the capacity to crown it as the most unique store of value the world has ever seen, saying that “Bitcoin appears on a path toward an immutable reserve asset.”
In the same regard, he asserts that Bitcoin will set the bar for the “future reserve assets and currencies.” The same opinion has been shared by some onlookers, many of whom are indifferent about the future of Bitcoin.
Repeatedly, these observers have echoed that Bitcoin is necessary for the reformation of the failing monetary system, but many unique events may be required to sustain Bitcoin’s status. As McGlone puts it: “Something unexpected needs to trip up Bitcoin or the price should keep advancing. In the financial world, Bitcoin may set the standard for the future of digital reserve assets and currencies.”
