Bloomberg commodity strategist Mike McGlone reveals Bitcoin has the potential to reach $ 50,000 following investors who have already moved into the crypto sector.
McGlone believes that by 2024 the currency volatility could reach the gold level, pushing the price surge to higher levels.
McGlone explained that while BTC showed strong support above $ 30,000 due to increasing institutional investor interest and potential as a global reserve asset, it is not impossible that Satoshi Nakamoto's asset price could be worth $ 50,000 or higher.
His statement is supported by a record of investments moving from gold to Bitcoin, including an increase in inflows into the Grayscale Bitcoin Trust (GBTC) and a decline in gold ETF holdings.
McGlone also said that the increase in stock market volatility has had a positive effect on gold and bitcoin with the combined investment of the two assets showing a 260-day (30%) volatility rate lower than the S&P 500 (35%).
Digital assets have the potential to see their resistance levels increase 100 times the gold resistance level. The current resistance level of BTC is $ 40,000 which is 22 times higher than the $ 1,800 gold.
During the spike in 2017, the price ratio of Bitcoin to gold has increased from 1x to 15x in just a few months.
It is no exaggeration to say that Bitcoin is chasing the height of the gold risk level by 2024. In fact, it is not impossible that Bitcoin is becoming less volatile than gold due to limited supply.
