The number of people believing that bitcoin could top $100,000 by the end of the year continues to grow, with the latest being Bloomberg’s Senior Commodity Strategist – Mike McGlone. By outlining the growing mass adoption, declining active supply, among other reasons, McGlone predicted that BTC could more than double its value in the next three months.
BTC to $100K: Bloomberg
This year has already been a wild roller-coaster when it comes down to BTC’s price as it surged from below $30,000 to above $60,000 for a new all-time high in a few months before crumbling back down to its 2021 entry-level.
Since those dark days in July, it has gained roughly $20,000 and currently stands just below $50,000. And, although there’re less than four months left until the end of the year, the predictions envisioning a more than 100% increase against the dollar within that time frame continue to amass.
Bloomberg’s Mike McGlone has also joined this bandwagon by outlining a few reasons. Firstly, he touched upon historical BTC trading trends before broaching the decreasing supply of the primary cryptocurrency.
This could be regarded from a number of viewpoints. The speed of creation of new bitcoins reduces every four years after an event called the halving. After the latest (third) one in 2020, the rate is now down to 6.25 BTC per block.
We can also add the three million coins considered lost and unaccessible to this. Additionally, long-term holders seem determined to retain their bitcoin holdings and refuse to sell even when the price tumbles as it did earlier this month.
This also coincides to a large extent with the stock-to-flow model. By reviewing the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of BTC on the market, the S2F also envisions a $100,000 price tag per coin by the end of the year.
Adoption Has a Role Too
McGlone’s third reasoning – increasing adoption – works jointly with the decreasing supply. Basic economic principles dictate that if the supply of an asset declines, while the demand stays the same or goes higher, the price should, in theory, rise as well.
And, the demand for the primary cryptocurrency has indeed been growing lately. We have giant companies allocating billions of dollars in it, some of which pledged not to sell any portions.
Institutional investors continue to pressure large banks to provide them with regulated venues where they can receive BTC exposure. The AUM in Grayscale’s Bitcoin Trust has multiplied 10-fold since late 2019.
As such, it’s not that big of a surprise that so many different people – from Jordan Belfort, Adam Back, Tom Lee to Chainalysis’ CEO believe that bitcoin could indeed go into a six-digit price territory by the end of 2021.