Why Bitcoin At $100K Is Just A “Matter Of Time”: Bloomberg Intelligence

Bitcoin follows what Mike McGlone, chief commodity strategist at Bloomberg Intelligence, calls a “permanent path.” The crypto-standard is one of the best performing assets in history, the expert said in a recent report, and it may be on track to post new gains in the second half of 2022.

At the time of writing, BTC is trading at $23,900 with a profit of 3% on today’s trading session and a gain of 2.4% over the past week. The cryptocurrency appears to be heading higher on the back of lower inflation expectations for the Consumer Price Index (CPI) for July.

BTC price with significant gains on the 4-hour chart. source: BTCUSDT TradingView

This measure was at its highest levels in several decades forcing the US Federal Reserve (Fed) to take measures by cutting its balance sheet and raising interest rates. Thus, creating a hostile economic environment for risky assets, such as bitcoin and stocks.

McGlone believes that the cryptocurrency could benefit from the forces of deflation. The Bloomberg Commodity Index and commodity prices, such as oil and copper, point to this trend.

In this sense, experts predict a rise in assets with fixed supplies. This could lead to gold and bitcoin reaching $2,000 and $100,000, respectively, in the long run.

McGlone believes that the benchmark cryptocurrency is becoming a more stable and less risky asset. This may translate to Bitcoin operating as a high beta version of the metal (gold) and Treasuries.

The price of bitcoin and gold may begin to “accelerate,” the report says, if West Texas Intermediate (WTI), the benchmark for oil pricing, follows the downtrend in commodities. McGlone wrote:

It is a matter of supply, demand and dependence in the next 14 years that should drive prices, and we see no reason to complicate what appear to be permanent paths, which is notable in the development of technology (…).

The Other Side of the Coin, Why Bitcoin Can Hold Its Gains

As seen below, the price of West Texas Intermediate crude oil has breached an important high resistance level in 2021. McGlone noted that the price of gold and oil are historically inversely correlated.

Hence, why does he seem convinced that Oil is pointing to the appreciation of the precious metal and its 2.0 version, Bitcoin. A Bloomberg Intelligence expert said:

Our tendency is toward more of the same pendulum (oil down as gold goes up). To the extent that the sinking of copper portends global deflationary trends and the possibility of an end to the Fed rate hikes, gold should gain support for a breakout of $2,000 an ounce.

Source: Mike McGlone via Twitter

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