In September’s crypto outlook newsletter, Bloomberg’s analyst Mike McGlone observed that the price of Bitcoin (BTC) could either be heading to the $500,000 mark, or it could fail. McGlone has continued to reiterate that in his view, Bitcoin is set to become digital gold.
He emphasized once again how Bitcoin’s limited supply and increasing demand were key adoption indicators, and drew comparisons to the 2017 bull run:
“Much of the broad crypto-asset market echoes 2017’s excesses, but the foundation is firming due to expanding decentralized exchanges (DEXs) and finance (DeFi). Limited supply vs. increasing demand is the bottom-line for Bitcoin, with macroeconomic underpinnings that support its march toward the market cap of gold, at a price of $500,000 by some estimates. Or it could fail.”
The price targets given by analyst are probably based on presuppositions that Bitcoin’s market cap will ultimately be comparable with that of gold’s $9 trillion. Dividing that figure by 21 million, which is Bitcoin supply ceiling, results in $428,571.
Echoing similar opinion was Anthony Pompliano, co-founder of the Morgan Creek Digital co-founder. As the forecast price of either zero or 500,000 are on different ends, Bloomberg may not be proven wrong in the near future.
