Senior analyst at Bloomberg Intelligence Mike McGlone expects continued growth of gold and bitcoin in the current “bullish” cycle.
McGlone notes macroeconomic factors that are extremely positive for defensive assets such as gold and bitcoin. Governments of various countries continue to issue massive Fiat currencies to cope with the crisis. Against this background, confidence in Fiat money is falling, and investors are investing in gold. In early August, the price of the precious metal reached a historic high, exceeding $2,050. According to Mike McGlone, gold can reach $3,000 per Troy ounce.
Bitcoin, like gold, acts as a protective asset, but it is also becoming more and more Mature as an asset and attracts more and more institutional investors. McGlone also noted that the volume of open bitcoin futures is constantly growing:
“Bitcoin ended 2019 around $7,000, closer to the lower end of the range, and this favours the transition to new peaks. Last year, the maximum was about $14,000, and it should be exceeded in 2020. If nothing extraordinary happens, bitcoin will continue its ten-year trend-it will continue to grow. Both the level of demand and the level of acceptance are growing, and these are favorable factors for bitcoin, ” said a senior analyst at Bloomberg.
A recent report by analysts at Grayscale Investments suggests that the situation in the cryptocurrency market resembles the situation that developed in early 2016 before the powerful growth of BTC.