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Bloomberg's Commodity Strategist Praises Bitcoin's Staying Power Above $30,000

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Thu, 01/28/2021 - 14:34
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Alex Dovbnya
Bloomberg's senior commodity strategist, Mike McGlone, expects Bitcoin to break away from the Dow
Bloomberg's Commodity Strategist Praises Bitcoin's Staying Power Above $30,000
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Bloomberg Intelligence's senior commodity strategist, Mike McGlone, expects Bitcoin to race ahead of the Dow Jones Industrial Average (DJIA) this year:

The ability to sustain above $30,000 favors Bitcoin vs. the Dow Jones Industrial Average, if past patterns are a guide.

The Dow rallied above 30,000 points for the first time on Nov. 24 after collapsing to 18,213 back in March due to the pandemic-induced market sell-off.

Bitcoin made history by surpassing $30,000 on Jan. 2, kicking off the new year on a high note. It then rallied over 40 percent to its current all-time high of $42,000 in only one week.

2020 parallels

While the Dow and Bitcoin represent two different stories, some pundits believe that both Bitcoin and crypto are too overheated now, and it is unclear whether there is more room for growth.

Bitcoin
Image by @mikemcglone11

However, according to McGlone, breaking away from the Dow would mark another major milestone for the world's largest cryptocurrency.

The same pattern played out in 2020 when Bitcoin managed to outstrip the tech-heavy Nasdaq index.

Related
Guggenheim's CIO Explains Why He Has Turned Bearish on Bitcoin After Predicting $400,000

A six-digit Bitcoin

As reported by U.Today, McGlone predicted that Bitcoin could potentially reach $50,000 this year. Unlike Guggenheim's Scott Minard, he mentioned that it was unlikely to revisit the $20,000 level this year.

In an October Bloomberg interview, the analyst mentioned that Bitcoin could reach six digits in two years:

The key thing about Bitcoin this year is very simple—it just added a one to the front of the number. Remember, it was around $7,000 at the end of last year. What I'm worried about—if you look at the past performance, which is potentially indicative of the future, the next year or two could add a zero to the back of the number.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.