An analyst from Bloomberg said he is optimistic about the future price level of cryptocurrency and expects the $ 170,000 level by 2022.
Bitcoin closed Thursday just above the previous day at $ 17,821, its 2020 high. This is also the highest value it has reached in the last three years. While Bitcoin is just $ 2,000 away from its previous high of just under $ 20,000, Bloomberg analyst Mike McGlone believes the rise of the leading cryptocurrency is not over yet.
McGlone said on Bloomberg TV:
“If you look at past performance, which is likely to indicate the future, in the next year or two, it could add a zero behind its price.”
Bitcoin finished 2019 with $ 7,000 and is now trading at $ 17,000. This means that McGlone’s comment on the cryptocurrency is likely to come true.
Price Increase Stems from Digital Gold Perception
McGlone pointed out that the price increase of Bitcoin is due to the perception that it is digital gold. Gold, a store of value, also surpassed its all-time high of $ 2,000 and is now consolidating. However, Bitcoin could possibly consolidate at this price point as well, and $ 20,000 could only act as short-term resistance.
“I’m afraid he will do what gold does. It reached $ 2,000 and has been consolidating in the bull market ever since.
Finally, McGlone stated that the corporate FOMO (fear of missing the opportunity) is the possible reason why the new price hike was different from the price in 2017. Both Microstrategy, a billion dollar company, and payment firm Square announced that they are putting Bitcoin in their reserves. PayPal Holdings Inc. it recently allowed US customers to buy Bitcoins.