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Bitcoin May Still Hit $100,000 in 2021 as Funds Keep Leaving Gold for BTC: Bloomberg’s Mike McGlone

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Wed, 09/22/2021 - 10:01
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Yuri Molchan
Bloomberg's chief commodity expert explains why Bitcoin may still reach $100,000 this year, despite the correction and what he has been underestimating about BTC
Bitcoin May Still Hit $100,000 in 2021 as Funds Keep Leaving Gold for BTC: Bloomberg’s Mike McGlone
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Mike McGlone, leading commodity strategist, offers a reason why the flagship cryptocurrency still has the chance to reach the $100,000 price line by the end of the year, despite the current Bitcoin correction.

He admitted that there is one important thing about Bitcoin he has been underestimating this year:

Funds keep outflowing from gold to enter Bitcoin

In his recent interview with Stansberry Research, McGlone admitted that he had underestimated one thing about crypto and gold. In particular: how many funds keep outflowing from gold and are being converted into Bitcoin and Ethereum.

For Bloomberg's expert, this means that the two leading cryptocurrencies are taking over gold. Bitcoin is doing it in particular since it has a strictly limited supply of 21 million coins with less than three million left to mine versus gold with an unlimited supply.

"Authorities plan to keep supply of fiat currency unlimited," BTC may still hit $100K

Mike McGlone believes that the Fed and the U.S. government plan to do their utmost to keep up the unlimited supply of fiat currency by tapering and by offering other types of financial stimuli to businesses and average people.

In this Bitcoin struggle, with its limited supply, and fiat currencies with their potentially unlimited supply, Bitcoin is likely to win, the commodity strategist of Bloomberg tweeted.

He added that a lot of investors have either been moving their funds from gold to Bitcoin or Ethereum or have been putting BTC and ETH into the same basket as gold.

McGlone shared that, in 2021, gold has been down 7%, Bitcoin is up almost 70% and Ethereum is up nearly 400%.

Therefore, the flagship cryptocurrency may still reach $100,000 by the end of this year, despite the massive correction it is facing at the moment.

Related
Bitcoin at $40,000, Ethereum at $2,800 Very Important Levels to Watch Now: Mike Novogratz

Bitcoin difficulty rises 3.16%

The difficulty of verifying Bitcoin transactions has seen another increase: it is up 3.16%. That is the fifth increase in a row this year. Overall, the Bitcoin hashrate keeps recovering after the crypto mining ban the Chinese government imposed on miners in May, forcing many of them to leave for crypto-friendly locations with cheap power, such as Canada, the U.S. and Kazakhstan.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.