Bitcoin (BTC) continues to consolidate around the $20,000 level with lingering uncertainties as the global economy faces a possible recession, with investors carefully monitoring Bitcoin’s price for any possible correction or rally.
In this line, commodity strategist at Bloomberg Intelligence Mike McGlone has stated that Bitcoin’s value is highly discounted at its current price but projected that the asset would rally to a high of $100,000 during an interview with Stansberry Research on October 17.
According to McGlone, Bitcoin’s rally will be inspired by the diminishing supply and increased demand from investors, a factor missing from other assets terming Bitcoin the ‘fastest horse in the race.’
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“Bitcoin, I think it’s a matter of time it appreciates towards that $100,000 level, and at some point, it’s going to just slip in and kick into that bull market, maybe at the same time gold and treasury bonds do in terms of price. The key thing right now is it’s getting pounded, but it’s one of the most discounted it’s ever been on 100-week and 200-week moving averages, and it’s simple facts of supply demand and adoption,” McGlone said.
Bitcoin following historical trajectory
Furthermore, the strategist pointed out that the current Bitcoin price should not be of concern, noting it follows a historical trajectory for the flagship cryptocurrency.
“Bitcoin is building a foundation around $19,000 to $20,000 like it did around $5,000 in 2018/19. It did get as low as $3,000, and here we are at $19,000. So that’s what Bitcoin does; it only goes down after it goes up a lot,” he added.
Fed’s tightening likely to slow down
It is worth noting that Bitcoin has corrected significantly due to continued Federal Reserve tightening to control soaring inflation. However, McGlone expects the Fed tightening to slow down amid a possible recession.
Furthermore, McGlone had recently noted that cryptocurrencies are likely to emerge top from the current bear market. He argued that cryptocurrencies are the fastest-growing technology that will have the upper hand once the ongoing market conditions are over.
Watch the full interview below:
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