Los Angeles (CoinChapter) – Mike McGlone, senior commodity strategist at Bloomberg Intelligence. Predicted that the price of Bitcoin could reach $400,000 by the end of 2021. Citing the asset emerging as a “risk-off” choice for investors.
McGlone shared a chart of the BTC/USD average price and the Bitcoin Liquid Index. Which was specially created for institutional use.
As the data suggests, a potential price peak this year could be as much as $400,000 per coin. Previous estimates called for an average of $288,000 between now and 2024.
“Well on its way to becoming a global digital reserve asset, McGlone said in a tweet. “A maturation leap in 2021 may be transitioning Bitcoin toward a risk-off asset, in our view.”
Corporations have taken notice that the supply of Bitcoin is supposed to decrease in the upcoming years. Thus, new reports of treasury allocations to BTC are appearing frequently.
“My mission right now is to fix the balance sheets of the world.” Said Michael Saylor, CEO of MicroStrategy, one of the largest Bitcoin treasury investors.
Saylor has poured tens of millions of dollars into Bitcoin since last summer. Starting a trend among public companies, which has seen over $52 billion converted to BTC on a cost basis.
Where could Bitcoin price head in short-term?
Traders are anticipating another Bitcoin rally in the near future. As a massive amount of GBTC shares is set to be unlocked.
“What I’d like to remind readers is each time a wave of large unlockings hit. Not only does Bitcoin’s spot price rise, but the share price of the Trust gains in value with respect to its underlying holdings.” Said analyst Ben Lily.
Bitcoin is trading at $54,433 with gains above 3.4% on the last day. The leading cryptocurrency is up 10.1% over the last month, but the weekly chart is in the red with losses of 7.5%. The market capitalization stands at $1.01 trillion.