According to Mike McGlone’s tweet, senior analyst of Bloomberg, Bitcoin (BTC) could peak as high as $400,000 each this 2021 as it continues to entice more and more investors as a so-called “risk-off” reserve asset. To prove his point even further, McGlone uploaded a supplementary chart that notably shows the BTC/USD average prices and a particular price ticker dedicated for institutions, called the Bitcoin Liquid Index.
#Bitcoin in Transition to Risk-Off Reserve Asset: BI Commodity — Well on its way to becoming a global digital reserve asset, a maturation leap in 2021 may be transitioning Bitcoin toward a risk-off asset, in our view. pic.twitter.com/Ycr1LSqEAJ— Mike McGlone (@mikemcglone11) March 26, 2021
Despite the many-lingering perceptions that BTC is still too volatile, the Bloomberg analyst believes that the crypto is well on its way to establishing itself as a global digital reserve asset. McGlone further notes that this year could be what propels BTC to become a bona fide risk-off asset. Notably, McGlone’s peak estimate of $400,000/BTC this year stomps on other remarkable forecasts, such as stock-to-flow’s more-modest estimation of $288,000/BTC between now and three years ahead.
While McGlone’s estimates may look outrageous at first glance, especially when compared to other noteworthy estimates such as that of the aforementioned stock-to-flow, the Bloomberg analyst’s take could just have some fuel behind it.
It is no secret today that BTC has recently been attracting several prominent institutions that prove to be more than happy to commit millions to billions of dollars, such as Michael Saylor’s MicroStrategy and Elon Musk’s Tesla, to combat the ongoing depreciation of the USD. Considering that the continual influx of accredited investors seems to be the main reason for BTC’s booming market price, maybe it is indeed just a matter of time before we see BTC reach as high as $400,000.