Mike McGlone, a senior commodities analyst at Bloomberg Intelligence, believes that Bitcoin’s (BTC) price will continue to rise. Stock prices fell by $19,126.
Mike McGlone Believes Bitcoin’s Price Will Rise
Comparative discounts to its strong hash power in October. The highest since the initial quarter of 2020 might soon see Bitcoin revert to “its tendency to outperform many assets.”
The Bloomberg analyst said in a post that was made on Twitter on October 19 that the increasing hash rate of Bitcoin. It measures a blockchain’s processing capacity and reliability, compared to its price ranges “to risk and reward leaning positively.”
Many people feel that, in principle, the utilization rate of Bitcoin should increase in proportion to its price. For example, McGlone showed a graph indicating that the 1-week average of Bitcoin’s hash power in October is “approximately similar” to the rate it should be around $70,000.
He said this about the price of Bitcoin. But, on the other hand, as of October 18, the cost is now $19,500.
McGlone said the last time such a significant gap existed between the value and the hash ratio was during the “1Q 2021 swoon.” This decline was followed by a parabolic increase that persisted through the years.
McGlone hinted that it was likely that we are already seeing a “similar pricing foundation building presently.”
Bitcoin Might Be Entering an Inevitable Sequence
The Bloomberg analyst is recognized as a Perma bull. The significant rash rates and growing demands, acquisition, and regulation. It means that Bitcoin might be entering an “inevitable sequence of its transition into the spotlight and at a comparatively discounted price.”
McGlone stated in a previous comment on Linkedin that it could be a subject of time” until Bitcoin resumes its historical tendency to surpass the performance of the majority of significant assets. He made the following observation:
“As mainstream usage continues to advance and adaptable improvements in US accounting rules give it a push. It may only be an issue of time until it resumes its tendency to outperform the majority of assets.”
In addition, McGlone said that the price of Bitcoin “should continue to climb over time.” Due to the supply and demand laws, he added that the crypto is exhibiting indicators that it would “bottom out” in the fourth quarter of 2022.
“It’s a little bit surprising that a fairly young equity that had soared has gone down due to the speed of Federal Reserve toughening in 2022,” he explained. “However, Bitcoin is displaying signs of hollowing and divergent resilience in 4Q.”
Before this, the Bloomberg expert has recommended that Bitcoin is a “heavy underdog,” which is “mature.” To overperform once conventional stocks eventually bottom out. The analyst predicted that Bitcoin could reach $100,000 in 2023 – 24 as virtual money evolves from a vulnerability to a risky asset.
