In a report published on Wednesday, Bloomberg’s senior commodity strategist MikeMcGlone explained that Bitcoin is showing strong support at $30,000, and “increasing institutional adoption and the potential for the benchmark to become a global reserve asset” could drive the price to $50,000 or higher. By 2024, he believes its volatility could even reach gold levels, driving the price much further. The report also cited evidence of funds moving to Bitcoin from gold.
“It’s logical to expect more funds to flow toward Bitcoin and away from precious metals.”
The Bloomberg report further cited evidence of funds moving to Bitcoin from gold, highlighting accelerating flows into crypto lending firm Grayscale Bitcoin Trust (GBTC) and decline in total known ETF holdings of gold. The investment firm has grown its GBTC fund from 1% to 10% of the “$210 billion tracking-gold ETFs” across 2020. “In a world going digital,” he stated, “it’s logical to expect more funds to flow toward Bitcoin and away from precious metals.” McGlone believes investing up to 5% in Bitcoin is becoming an increasingly wise decision.
Bitcoin has the potential for its resistance levels to rise to 100 times the resistance levels of gold.
A rise in stock-market volatility has boded well for gold and bitcoin in the past. The strategist explained, with a combined investment of Bitcoin and gold showing a lower 260-day volatility rate (30%) when compared to the S&P 500 (35%). Despite this, McGlone believes that the digital asset has the potential for its resistance levels to rise to 100 times the gold resistance levels. Current resistance levels for BTC ($40,000) are 22 times that of gold ($1,800). During the 2017 bull run, the Bitcoin-to-gold price ratio shot up from 1x to 15x in a matter of months.