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.
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.
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