Could Bitcoin Reach $100,000 by the end of the year?

Could Bitcoin reach $100,000 by the end of the year? Bloomberg's Mike McGlone has explained the situation.

Mike McGlone stated that the dwindling supply of Bitcoin and the increasing adoption by various investors could push BTC to $100,000 by the end of the year. So why can Bitcoin hit $100,000? McGlone explained his reasons. The number of people who believe that Bitcoin can exceed $100,000 by the end of the year is increasing day by day, and most recently, Bloomberg's senior commodity strategist Mike McGlone is among the believers. Summarizing increased mass adoption, declining active supply, among other reasons, McGlone predicts that BTC could more than double in value in the next three months. This year has already been a wild roller coaster when it comes to the price of BTC as BTC rallied from under $30,000 to an all-time high of over $60,000 in a matter of months. Since the bad days in July, BTC has gained roughly $20,000 and is currently hovering just under $50,000. With less than four months to the end of the year, BTC forecasts are growing exponentially, predicting more than 100% gains against the US dollar in this timeframe.

Why Is McGlone Expecting $100,000?

McGlone first talked about historical BTC trading trends before addressing the dwindling supply of the leading cryptocurrency. This can be evaluated from several aspects. After the event we call halving, the rate of creating new Bitcoin decreases every four years. After the most recent (third) halving in 2020, the rate has now dropped to 6.25 BTC per block. To this it is possible to add the three million tokens that are considered lost and inaccessible. Also, long-term holders seem determined to hold on to their Bitcoin holdings even when the price drops, as they did earlier this month, and refuse to sell. This is also largely in line with the Stock Flow Model. By examining the flow as the size of current reserves and the annual supply of BTC in the market, S2F predicts a price level of $100,000 per coin by the end of the year. McGlone's third rationale works with increased adoption and decreased supply. Basic economic principles state that if an asset's supply decreases but demand stays the same or rises, the price should theoretically increase as well. And the demand for the biggest cryptocurrency has indeed been on the rise lately. There are giant companies that have allocated billions of dollars to cryptocurrency, and some have promised not to sell any of it.

What Did McGlone Get Right In The Past?

Bloomberg analyst Mike McGlone stated and knew that Bitcoin will reach $10,000 in early 2020. Mike McGlone gave the good news of 12 thousand dollars when the Bitcoin price was at the level of 9 thousand dollars in the past months, and he knew it. Apart from these, the analyst also has other successful predictions. In early January, the analyst said that BTC will hit $50,000 in 2021, and this level was reached in mid-February.