Bloomberg’s senior commodity strategist Mike McGlone argues that Bitcoin is gradually becoming a global reserve asset that complements the US dollar. According to a Bloomberg report, digital assets like Bitcoin and Ethereum are on the way to new highs.
The September edition of Bloomberg’s Crypto Outlook called $100,000 BTC and $5,000 Ether (ETH) the “path of least resistance” after a more than 50% correction this summer.
“Crypto-assets appear in a revived and refreshed bull market with the 2H benefit of a steep discount from previous highs at the start,” said McGlone, regarding the second half of 2021.
He called portfolios lacking BTC or ETH exposure “naked,” referring to the relative underperformance of government bonds and gold:
“Portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix. A macro risk-off decline is a primary threat for the crypto bull market.”
Although McGlone is not alone among six-figure Bitcoin predictions, his long-term forecast puts BTC near the center of the global financial system.
“We believe Bitcoin represents the digital future,” he said, explaining that the dollar has advanced more than 300% against major peers since President Richard Nixon nixed the greenback’s gold peg in 1971.
“We foresee a future of Bitcoin, the digital reserve asset, complementing the dollar reserve currency,” McGlone further added.
On Friday, Bitcoin price topped $51,000 while the broader cryptocurrency market pushed to three-month highs. During this rally, the total market cap of all cryptocurrencies upped to $2.4 trillion from $1.2 trillion in mid-July.