According to Mike McGlone, a senior commodity strategist at Bloomberg, the price of Bitcoin could soon see the $ 50,000 level following the transition from gold to digital asset.
McGlone expressed his thoughts in the February 2021 issue of “Bloomberg Crypto Outlook”. He pointed out that Bitcoin has been holding the level of $ 30,000 for a while. Combined with “increased institutional adoption and the potential of benchmarking as a global reserve asset”, Bitcoin could move towards $ 50,000. The analyst wrote:
In a world that goes digital, it makes sense to expect more funds to flow to Bitcoin and precious metals. Exits from gold exchange mutual funds and inflows for products following benchmarking cryptocurrencies support a potential paradigm shift.
According to McGlone’s claims, a handful of institutional investors are starting to choose Bitcoin over gold. Michael Saylor of MicroStrategy explained why his company decided to invest in Bitcoin, saying that the ROI of gold is not attractive enough.
McGlone noted in his report that the funds were moving from yellow metal to Bitcoin. Also, Grayscale’s Bitcoin Trust rose to around 700,000 BTC, while gold ETFs fell from 111 million to about 109 million ounces in October last year.