Bloomberg analyst Mike McGlone considers that Bitcoin has all the chances to reach $20 000 this year and renew its historical maximum.
In his article McGlone writes that technical and fundamental factors are indicating more and more at positive development of Bitcoin related events. In such a way, BTC is becoming a more popular investment instrument, the number of open futures positions continues to grow. Also, institutional investors are changing their attitude to cryptocurrencies.
According to Bloomberg analyst, “something must go very wrong to force Bitcoin to cheapen”. McGlone has claimed that the rate of the first cryptocurrency can even touch the point in $28 000.
“Bitcoin finished 2019 at the point $7 000, approximately at the bottom of the channel, what should lead to a noticeable increase. The maximum level of the previous year has been $14 000, and this year the rate can exceed it twice”, — Mike McGlone wrote.
He also noted that Coronavirus pandemic and measures to support the economy by central banks helped Bitcoin to gain popularity and reduce volatility quicker. Now the volatility of the first cryptocurrency is approximately two times higher than the volatility of the Nasdaq index, and in 2017 the gap was sevenfold.
“The number of open futures positions amounted to 50 000 BTC. Not so much in comparison with total amount of bitcoins, but futures demonstrate that crypto assets become generally accepted asset class”, — the analyst stressed.
McGlone believes that the stablecoin Tether in the future will surpass ETH in terms of capitalization and take second place in the ranking. USDT has become very common, and its use is constantly increasing, as it has become an intermediary for the global reserve currency.