Bitcoin $47K
Bitcoin

Bitcoin $47K if 2017 high is breached, Bloomberg Intelligence analyst says

Mike McGlone says BTC ‘has a history of adding zeros,’ and the current all-time high of $20,089 is the main thing standing in the way of a trillion-dollar market cap

A senior commodity strategist at Bloomberg Intelligence says a $1 trillion market cap for Bitcoin is in sight. The only thing standing in the way? Surpassing the current all-time high price of $20,089.

Bitcoin price $47K
Bloomberg Intelligence’s Mike McGlone sees BTC $1T in sight (via Twitter)

Mike McGlone, who has won admirers for his increasingly optimistic view on BTC, said the world’s biggest cryptocurrency “appears to be in an early price-discovery stage and may simply continue its ascent in 2021.”

So, if McGlone’s prophecy comes through, records are smashed and a $1 trillion market cap is reached by 2022, what would that mean for Bitcoin’s price? Well, this would result in a price of about $47,000 per coin—a 133% surge above the previous high.

McGlone likened Bitcoin to the digital version of gold—with two key differences. First, BTC has a limited supply of 21 million, whereas the true quantity of precious metal left to be mined is unknown. Second, this cryptocurrency “has a history of adding zeros.”

With Grayscale Investments continuing to snap up BTC at a frenetic pace (it now owns more than 500,000 BTC with a market value of $8.2 billion) and PayPal’s new crypto service launching in the U.S., McGlone added: “Mainstream adoption is rising.”

Back on Nov. 9, McGlone had also written that the pendulum was swinging “favorably” toward a Bitcoin price of $20,000 in 2021 thanks to “improving fundamental and technical underpinnings”—adding that gold had the potential to surge to $2,000 an ounce.

A nervous wait

The question now is if Bitcoin will manage to surpass the elusive $20,000 record set in December 2017, or whether the parabolic bull run will start to run out of steam. With the Fear & Greed Index flashing a warning of “extreme greed” in the market, some analysts have warned that a sudden pullback is likely—especially considering that BTC has only traded at or above this level for 24 days in its 11-year history. One veteran trader, Tone Vays, has predicted that prices will top at $18,000 and no retest will occur.

That said, BTC’s surge seems to have taken many analysts and investors by surprise. Right now, the cryptocurrency is just 16% off its all-time high—and just three weeks ago, data from Skew suggested that the probability of exceeding $20,000 by the year end stood at just 7%.

Traditionally, Bitcoin tends to see momentum in the months that follow block rewards being halved, as happened back in May. Of course, 2020 has had a few one-off events that may have made crypto more alluring in the eyes of investors—not least COVID-19, which has forced central banks to embark on aggressive money-printing programs.

BTC managed to shrug off losses over the weekend to return to the path to $17,000. Even the American finance giant Citibank is getting bullish over Bitcoin. As reported by Modern Consensus, one of its directors has given a price target of $318,000 for the crypto in December 2021.

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Connor Sephton is a journalist with an interest in cryptocurrencies, personal finance, and financial inclusion—as well as the challenges the crypto industry faces in achieving mainstream adoption. He owns cryptocurrencies.