Bloomberg Senior Analyst Bullish: 3 Reasons for Bitcoin to Reach $100K this Year

There is a growing belief that bitcoin will surpass $100,000 by the end the year, according to Mike McGlone, Bloomberg Senior Commodity Strategist. McGlone explained that BTC’s value could increase by more than doubling in three months due to declining active supply and growing mass adoption.

Bloomberg Bullish for BTC to $100K

BTC’s price has been an incredible rollercoaster ride this year. It soared from below $30,000 up to $60,000 in just a few months, before falling back to its 2021 entry level.

It has gained approximately $20,000 since July’s dark days and is currently at just under $50,000. Even though there are only four months before the year ends, predictions of a more-than 100% dollar increase continue to mount.

Mike McGlone, Bloomberg’s CEO, has also joined the bandwagon. He outlined a few reasons. Before addressing the declining supply of primary cryptocurrency, he briefly touched on historical BTC trading trends.

You can view this from many different perspectives. After an event known as the halving, the speed at which new bitcoins are created decreases every four years. The current rate of creation is 6.25 BTC per block, after the third one in 2020.

The three million coins that are considered lost and inaccessible can be added to the total. Long-term bitcoin holders are determined to keep their bitcoins, even if the price falls as it did earlier in the month.

This is also in line with the stock-toflow model. The S2F envisions a $100,000 price per coin by the end.

Everything Adapts. Bitcoin will as well.

McGlone’s third reasoning, increasing adoption – is a combination of decreasing supply and increased adoption. The basic economic principle states that if an asset’s supply decreases while demand increases or stays the same, then the price should also rise.

The primary cryptocurrency is in high demand. It is owned by giant corporations that have invested billions of dollars, and some of these companies pledged to not sell any.

Large banks are being pressured by institutional investors to offer them regulated venues that allow them to receive BTC exposure. Grayscale’s Bitcoin Trust AUM has risen 10-fold since the end of 2019.

It’s no surprise, therefore, that so many people, from Jordan Belfort to Adam Back to Chainalysis CEO, believe bitcoin could reach six-digit prices by 2021.