Why Bitcoin At $100K Is Just A “Matter Of Time”, Says Bloomberg Intelligence

Bitcoin follows what Senior Commodity Strategist for Bloomberg Intelligence, Mike McGlone, calls an “enduring trajectory”. The benchmark crypto is 1 of the best-performing assets successful history, arsenic the adept said successful a caller report, and mightiness beryllium connected way to grounds caller gains successful the 2nd fractional of 2022.

At the clip of writing, BTC’s terms trades astatine $23,900 with a 3% nett implicit today’s trading league and a 2.4% nett implicit the past week. The cryptocurrency seems to beryllium trending upwards connected the backmost of a alteration successful inflationary expectations for July’s Consumer Price Index (CPI) print.

BTC’s terms with important gains connected the 4-hour chart. Source: BTCUSDT Tradingview

This metric has been signaling multi-decade highs forcing the U.S. Federal Reserve (Fed) to instrumentality measures by decreasing its equilibrium expanse and hiking involvement rates. Thus, creating a hostile economical situation for risk-on assets, specified arsenic Bitcoin and equities.

The cryptocurrency mightiness payment from deflationary forces, McGlone believes. Bloomberg’s Commodities Index, and the terms of cardinal commodities, specified arsenic Oil and Copper, are hinting astatine this trend.

In that sense, the experts expect assets with fixed supplies to rally. This could acceptable Gold and Bitcoin to deed $2,000 and $100,000, respectively, successful the agelong term.

McGlone believes that the benchmark crypto is becoming a much stable, and little risky asset. This could construe into BTC operating arsenic a “high-beta mentation of the metallic (Gold) and Treasury bonds”.

The terms of Bitcoin and Gold mightiness commencement “accelerating”, the study says, if the West Texas Intermediate (WTI) oil, a benchmark for lipid pricing, follows the downside inclination successful commodities. McGlone wrote:

It’s a question of supply, request and adoption successful the adjacent 14 years that should thrust prices, and we spot small crushed to complicate what look to beryllium enduring trajectories, notable successful advancing exertion (…).

The Other Side Of The Coin, Why Bitcoin Could Sustain Its Gains

As seen below, the terms of WTI lipid broke supra an important absorption level successful 2021. McGlone noted that the terms of Gold and lipid person been historically inversely correlated.

Thus, wherefore helium seems convinced that lipid is hinting astatine appreciation for the precious metallic and its 2.0 version, Bitcoin. The Bloomberg Intelligence adept said:

Our bias is tilted toward much of the aforesaid pendulum (Oil down with Gold rising) swinging inclination for lipid to proceed downward successful 2H. To the grade that sinking copper portend planetary deflationary trends and the imaginable for an extremity of Fed complaint hikes, golden should summation underpinning to breach $2,000 an ounce.

Source: Mike McGlone via Twitter