Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, has opined that Bitcoin and Ethereum are still in early adoption days.
#Bitcoin and #Ethereum remain in early adoption days, with increasing demand vs. declining supply and related price implications. Our bias is why complicate it -- unless something unlikely reverses the proliferation of the nascent technology, prices should rise over time. pic.twitter.com/SAgqWrfIMV— Mike McGlone (@mikemcglone11) January 29, 2022
He expects the two largest cryptocurrencies to continue appreciating due to supply-demand dynamics.
McGlone believes that only a black swan event will be able to stop the proliferation of these cryptocurrencies.
Earlier this month, the analyst doubled down on his prediction that Bitcoin and Ethereum would reach $100,000 and $5,000, respectively, by the end of 2022.
In December, McGlone predicted that Bitcoin would outperform the U.S. stock market.
At the same time, McGlone has been highly critical of Dogecoin and Shiba Inu. He recently said that the market had to be cleansed of such meme coins for the blue chips to thrive.
The inflation-weary U.S. Federal Reserve is seen as the biggest hindrance for cryptocurrency bulls. As reported by U.Today, Goldman Sachs recently said that Bitcoin was more vulnerable than ever to future interest rate hikes due to the fact that it now tends to trade in lockstep with traditional financial assets.
Bitcoin and Ethereum are down 44.67% and 46.16% from their record highs, respectively.
Earlier this week, the top cryptocurrency briefly dropped below $33,000, pushing the whole market significantly lower.
In his research note published in early January, McGlone wrote that $30,000 might become the new $3,000 level for Bitcoin, referring to the crash that took place in December 2018.
Last September, he accurately forecasted that a futures-based Bitcoin exchange-traded fund would be approved in October.