Senior commodity strategist Mike McGlone has said in a Bloomberg report that the Bitcoin price could reach $ 50,000. He indicated that Bitcoin (BTC) has managed to guard the $ 30,000 barrier. Although we briefly fell below this level once, traders were able to quickly get the Bitcoin price above it.
He further noted that the $ 30,000 level served as a strong support and that increasing institutional adoption could push the Bitcoin price to $ 50,000 or higher. CryptoQuant's CEO, Kim-Young Ju, previously reported that institutions and whales are still buying Bitcoin despite the relatively high Bitcoin exchange rate, showing that they believe this is also a very important level.
Mike McGlone said the following in the report:
"About $ 30,000 is the threshold supported by the emergence of new institutional investors and global acceptance as a store of value. Our chart represents the milestone of the 20-week moving average excess of over $ 20,000, which we consider an extreme downward level in the event of a risk-off swoon similar to 1Q20. ”
He further noted that there is ample evidence showing that institutional investors have moved funds from gold to Bitcoin.
According to McGlone, this institutional interest came mainly from the Grayscale Bitcoin Trust, an investment fund manager that offers institutional investors a way to invest in Bitcoin through a more traditional investment vehicle.
He also gave the following reason for the rising interest:
"In a world going digital, it makes sense to expect more money to go into Bitcoin and away from precious metals."
The report further quoted a decline in total known ETF holdings of gold. As confidence in Grayscale soared and capital poured in, the mutual fund manager increasingly collected Bitcoin.
“Our research shows the accelerating flows to Grayscale Bitcoin Trust (GBTC) as they decline in total known ETF holdings of gold,” said Mr. McGlone. "With nearly 700,000 Bitcoins, GBTC is hitting record highs, while gold ETFs have fallen to about 107 million ounces from its peak in October, just above 111 million."
McGlone believes investing up to 5% in Bitcoin is becoming an increasingly sensible decision and said Bitcoin is on track to match gold's risk level by 2024. In fact, he said Bitcoin could become even less volatile than gold because of the fixed supply.
"To reach this milestone, Bitcoin may just have to stick with what it's doing: appreciate in price and mature."
