Megabulls such as PlanB are predicting parabolic short- to medium-term price moves for bitcoin, but Bloomberg analyst Mike McGlone believes the leading digital asset’s ascent to $100,000 will be a slow, steady and almost inexorable grind.
The senior commodity strategist at the financial news service believes bitcoin will steadily appreciate because of its fixed supply combined with a growing 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 video interview.
McGlone thinks bitcoin could become a better store of value than gold, the traditional safe haven, because its supply is capped. Unlike gold, the total potential supply of which is unknown, bitcoin is inherently scarce; there will never be more than 21 million , and many of the ones already mined have been lost forever, thus increasing the potential value of those that remain accessible.
As demand for the digital asset grows, the price will inevitably go up, explained McGlone. He pointed out that the number of active bitcoin addresses is increasing rapidly and that more and more bitcoin is flowing into regulated exchanges, both of which are strong indications of increasing demand.
But he said investors shouldn’t expect bitcoin to soar to gobsmacking new highs on the short term as it has historically following its reward halvings – it climbed from around $1,000 to nearly $20,000 in the last bull run, before crashing hard in early 2018. Now that it is a mature asset, he said its price behaviour will be less dramatic.
When asked about Pantera Capital’s prediction that bitcoin will soar to $115,000 in just a year, McGlone said, “Bitcoin 10x? Maybe over 10 years, that makes a lot of sense.”