Mike McGlone, a senior commodity strategist at Bloomberg Intelligence believes that “If Bitcoin were to catch up to Ethereum’s performance this year, the No. 1 crypto’s price would approach $100,000.”
When one looks at year-to-date market performance of Ether (ETH), it has outperformed Bitcoin (BTC) by a commendable stretch. Ether’s returns rose more than 320% against Bitcoin’s 54% returns. Despite Bitcoin trailing in matters performance, McGlone is confident that if given time, Bitcoin will catch up with Ether’s gains and this might push its price per unit to $100,000.
Bitcoin Breaks the $46k mark
In one of his tweets on August 9, the analyst asserted that “Ethereum in 2021 Is Bitcoin Guidance for $100,000…” His tweet came at the right time just as BTC price hit the $46,000 mark.
Ethereum in 2021 Is Bitcoin Guidance for $100,000: Flippening? If #Bitcoin were to catch up to #Ethereum's performance this year, the No. 1 crypto's price would approach $100,000. Though we see Bitcoin on that path, there appears little can stop the process of Ethereum flippening pic.twitter.com/7JKFe60JyZ
— Mike McGlone (@mikemcglone11) August 9, 2021
BTC/USD 1-hour candle chart (Bitstamp). Obtained from: TradingView
The chart above shows BTC rising to $46,000 after weekly gains of 18%.
Bitcoin performance vs Ethereum performance (in 2021). Obtained from: Bloomberg Intelligence
McGlone did not focus so much on laying out the specific factors that would push BTC towards matching ETH’s yearly gains; however, going by his earlier report on cryptocurrencies, he did mention several catalysts that could thrust crypto prices towards the six-figure club. As per the report, the analyst notes:
“About 80% of Bitcoin and Ethereum, the majority of the Bloomberg Galaxy Crypto Index (BGCI) performance comes from the broader perception of the first-born crypto as a global digital-reserve asset, plus accelerating digitization of fintech and the monetary system.”
Untouched Trillions of Dollars
Bitcoin enthusiasts are confident in the cryptocurrency competing with the U.S. dollar to assert its position as a global reserve asset. Crypto proponents look towards cryptocurrency’s fixed supply cap which makes Bitcoin sound better as a global reserve asset, especially considering that in 2020 alone the Federal Reserve printed $3.1 trillion. The proposed Infrastructure Bill currently under discussion in Washington is estimated to pile on an extra quarter of a trillion dollars in debt, but incorporating Bitcoin as the reserve asset could fix this.
The best evidence of Bitcoin’s soaring above the dollar was last year’s performance where it closed 260% higher. This is an indicator that investors leaned towards it as a tool against dollar-led inflation.
Bitcoin price performance through the recent years. Obtained from: TradingView.com
Recent years have seen demand rising for Bitcoin among institutional investors such as foundations, pension funds, and global sovereign wealth funds. However, even with the trillions of dollars in reserves, they cannot invest them in the crypto ecosystem yet, until crypto regulations get clearer.