Bitcoin (BTC) is still criticized for being too volatile, but a Bloomberg analyst believes that, on the contrary, it is becoming a “risk-free” choice for investors.
On a tweet on March 25, Mike McGlone, senior commodities strategist at Bloomberg Intelligence, said that this year marked a turning point for the largest cryptocurrency.
$ 400,000 BTC would “rhyme” with the story
McGlone uploaded a chart of the average BTC / USD price and Bitcoin Liquid Index, a price ticker created especially for institutional use.
“On its way to becoming a global digital reserve asset, a maturation leap in 2021 may be making the transition from Bitcoin towards a risk-free asset, in our opinion,” he wrote.
A potential price spike this year, with the previous behavior as a context, could reach $ 400,000 per currency, the graph shows. This exceeds other estimates, such as stock-to-flow, which calls for an average of $ 288,000 between now and 2024.
Although McGlone did not provide exact details of the factors behind Bloomberg’s In view of this, the idea of reducing Bitcoin, rather than increasing portfolio risk, is the point of discussion of the year among companies. New reports of treasury allocations to BTC appear frequently, with an unabated appetite for price action.
“My mission now is to fix the world’s balance sheets,” said Michael Saylor, CEO of MicroStrategy, one of the biggest investors in Bitcoin treasury, in an interview with TIME this week.
Saylor started a trend among public companies last summer, which saw more than $ 52 billion converted to BTC based on cost, now worth more than $ 73 billion, according to the Bitcoin Treasuries monitoring feature.
What risk?
Before Morgan Stanley became the first major bank to open access to Bitcoin funds to high net worth investors next week, however, opponents continue to spread familiar arguments against exposure.
“Morgan Stanley limiting access to cryptography to 2.5% of individual high net worth accounts, which have more than $ 2 million in assets and have been active for more than six months, shows that the bank realizes that Bitcoin is very risky and wants to limit the legal liability of investors who lose money “, gold bug Peter Schiff recently claimed.
Meanwhile, Fed Chairman Jerome Powell compared Bitcoin to a “substitute” for gold, much to Schiff’s dismay, but added that it poses no risk to the dollar or financial stability.
As reported by Cointelegraph, average returns for BTC / USD have reached 200% each year since the start of the cryptocurrency.