Bitcoin to reach $400,000 this year, according to Bloomberg’s Senior Commodity Strategist

Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, made some remarks on Twitter about Bitcoin’s current run and came with a price prediction.

McGlone first shared a tweet saying that Bitcoin is “well on its way to becoming a global digital reserve asset” and that “a maturation leap in 2021 may be transitioning Bitcoin toward a risk-off asset, in our view.”

In a chart that was uploaded with the tweet, the BTC/USD average price and the Bitcoin Liquid Index indicate a $400,000 price to be within reach this year:

 

 

McGlone’s chart does outperform other estimates such as the popular PlanB Stock-to-Flow Model that has historically been proven to be very accurate, where is predicted that a price of $288,000 is lined up for the year:

 

 

It has to be said that current Bitcoin price is already outperforming the Stock-to-Flow Model and that this model does not rule out a higher peak.

McGlone further made his case for the current bull-run that seems all but over and wrote in consecutive tweets that:

“Advantage Starts With Limited Supply – Juxtaposed against the unlimited supply of commodities, equities and currencies, a limited supply is Bitcoin’s key characteristic. The number of new Bitcoins will drop to 450 a day in 2024 from 900.”

“What Really Matters for Bitcoin: Increasing Demand and Adoption – The potential launch of Bitcoin ETFs in the U.S. should keep the price buoyed. Increasing institutional demand, notably into corporate treasuries and accolades from a few billionaires, are part”

The increased institutional demand was outlined in the below chart that McGlone included:

 

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