Having difficulty in recovering after being rejected from the $52000 level, Bitcoin dropped below $40,000 yesterday and retreated to the $39600 level. Risk aversion in the global markets showed more effect in cryptocurrencies.
While the Fed’s signals that it will begin to reduce its asset purchases, the Evergrande crisis, there has been a serious decrease in the number of analysts who say that a new rally will come in the short term in Bitcoin.
Bloomberg senior commodity strategist Mike McGlone, who said that Bitcoin will go to $ 100,000 in 2021 at every opportunity, stated that there is no change in his expectations for Bitcoin. The analyst, who stated that the fluctuations in the last days do not constitute an obstacle in front of the $100,000 target, are the reasons that strengthen this opinion.
Speaking to Stansberry Research, the analyst admitted that he underestimated an issue related to Bitcoin and gold. Thinking that the funds flowing from gold to Bitcoin and Ethereum should not be underestimated, the analyst said that cryptocurrencies continue to replace gold.
“Bitcoin does this specifically. Against Bitcoin, which has a limited supply of 21 million, there is gold with an unlimited supply. This technology, with its limited supply and potential, is likely to win this fight against the unlimited supply of fiat currencies and gold.
Many investors’ funds are shifting to Bitcoin and Ethereum. Many investors put BTC and ETH in the same basket as gold.
Bitcoin is up 70% from the start of 2021. Ethereum is about 400% up. By contrast, gold is 7% lower.
For these reasons, although we are currently in a drastic correction, Bitcoin could reach $100,000 by the end of the year.”