Bloomberg analyst Mike McGlone (Mike McGlone) published a study according to which the bitcoin exchange rate is moving to $50,000, as investors withdraw funds from gold and invest in BTC.
In the document, McGlone recalled an increase in the inflow of funds to the Grayscale Bitcoin Trust (GBTC) and a decrease in the capitalization of the gold ETF. In 2020, the capitalization of GBTC increased from 1% to 10% of the $210 billion “known ETFs that track the gold exchange rate”. A senior Bloomberg analyst noted:
“In a world that is increasingly becoming digital, it is logical to expect the transition of investments in bitcoin and the departure from the ownership of precious metals. If there is no major technical failure, then old-fashioned gold investors will be at risk, as investing from 1% to 5% of assets in bitcoin will become increasingly reasonable.”
McGlone stressed that bitcoin has formed a strong support at the level of $30,000 and now the first cryptocurrency is moving towards $50,000 due to ” increased institutional recognition and the opportunity to take the place of a global reserve asset.”
According to the analyst, by 2024, the volatility of bitcoin may decrease to the levels of gold volatility. And in the future, it may be even lower due to the limited number of coins issued. Now the 260-day volatility of bitcoin is 50%, the same indicator was for gold in the 80s.
Earlier, McGlone said that within five years, the rate of the first cryptocurrency may well reach $100,000.