Bloomberg analyst Mike McGlone believes that the $100,000 level could be a potential price ceiling for Bitcoin, the leading cryptocurrency by market capitalization.
This essentially means that the flagship coin could struggle to meaningfully rise above the aforementioned level in the future.
McGlone believes that excessive speculation has likely reached its peak in the crypto market.
He believes that gold could be a more favorable asset due to investors retreating from safe haven assets.
After touching the much-coveted $100,000 level, Bitcoin is now underperforming gold once again.
If a safe haven like gold is outperforming equities and crypto, this might signal risk-off sentiment in global markets.
Too many coins
McGlone has also pointed to the issue of excessive supply of cryptocurrencies.
According to the prominent Bloomberg analyst, this market saturation actually dilutes the value of the main coin.
This massive growth of the cryptocurrency market results in downward pressure on valuations, according to McGlone.
Could Bitcoin still outperform gold?
McGlone's bearish Bitcoin view is not shared by analysts at JPMorgan. As reported by U.Today, the leading banking institution predicted that the leading cryptocurrency would end up outperforming the yellow metal in the second half of this year.
As reported by U.Today, Fundstrat's Tom Lee is also convinced that Bitcoin could outperform gold this year.
Jurrien Timmer, director of global macro at mutual fund behemoth Fidelity, also believes that gold could potentially pass the baton to Bitcoin.
Timmer believes that Bitcoin decoupling from stocks could potentially mark a major milestone for the leading cryptocurrency.
Vladislav Sopov
U.Today Editorial Team