Bloomberg: Bitcoin could hit $500K or drop to zero

Published at: Sept. 3, 2020

In September’s crypto outlook newsletter, Bloomberg’s analyst Mike McGlone observed that the price of Bitcoin (BTC) could either be heading to the $500,000 mark, or it could fail. McGlone has continued to reiterate that in his view, Bitcoin is set to become digital gold. He emphasized once again how Bitcoin’s limited supply and increasing demand were key adoption indicators, and drew comparisons to the 2017 bull run:

“Much of the broad crypto-asset market echoes 2017's excesses, but the foundation is firming due to expanding decentralized exchanges (DEXs) and finance (DeFi). Limited supply vs. increasing demand is the bottom-line for Bitcoin, with macroeconomic underpinnings that support its march toward the market cap of gold, at a price of $500,000 by some estimates. Or it could fail.”

The estimates that the analyst refers to are likely based on assumptions that Bitcoin’s market capitalization will eventually reach parity with gold’s $9 trillion. Dividing that number by the maximum supply of Bitcoin of 21 million produces $428,571. A similar sentiment was recently voiced by The Morgan Creek Digital co-founder Anthony Pompliano.

Zero to five hundred thousand provide a pretty good margin of error, unlikely Bloomberg will be proven wrong anytime soon.

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