Bitcoin is trading near $24k, more than 60% below its all-time high. However, this doesn’t change the fact that investors are still bullish on the long-term growth of the asset. A recent report showed that over 60% of Bitcoin’s supply has been illiquid for the last 1 year. So, it doesn’t come as a surprise that Mike McGlone from Bloomberg Intelligence says Bitcoin reaching $100k is just a “matter of time.” We might already be on our way to making new highs by the end of the year.
Bitcoin is a mathematical prowess
When we talk about Bitcoin reaching $100k, $200k, $500k, and even $1 million, these are not just numbers but a result of the way BTC has been designed. Bitcoin halving happens every four years, which reduces the mining rewards by 50%. This reduces active supply in the market and triggers a major bull run. In Bitcoin’s entire existence, every halving has sparked a bull run.
Another great thing about Bitcoin is its limited supply of 21 million and unlimited demand. When we understand that there are over 7 billion people globally, and sooner or later, everyone will learn about Bitcoin as they did about Gold, the price of BTC will skyrocket. The demand potential for Bitcoin is unreal, and in the next decade, we could see prices go even past $1 million.
Bitcoin also has its use in the remittance market, as a store of value, and now even in day-to-day transactions with the lightning network. This makes it indispensable with all the other qualities that Bitcoin already has.
Mike McGlone on Bitcoin’s $100 target
The current interest rate hikes and falling inflation could be helpful for Bitcoin and other risk-on assets. Mike believes that the current target for BTC and Gold are $100k and $2000. He also said that assets that have a fixed supply are expected to rally during this time. Mike believes that Bitcoin is becoming more stable and safer to invest in with time. It can also be viewed as a high beta version of Gold and Treasury bonds. Bitcoin also has the potential to rally if the commodity market continues on a downtrend in the upcoming months.
What are your thoughts as Mike says that Bitcoin reaching $100k is just a “matter of time”? And do you think it could happen in 2022? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.