A top analyst at Bloomberg compared today’s $20,000 Bitcoin (BTC) price to the previous $5,000 value as the bottom. Here are Mike McGlone’s expectations for Bitcoin…
Is $20,000 the new low?
Bitcoin is currently struggling to beat the bears after a sharp price drop that saw the coin’s value drop from $30,000 to almost $20,000. BTC only saw $100 up from the previous record level of $20,000 in 2017. The price has since climbed to $22,143. While some, like Fidelity’s Jurrien Timmer, consider Bitcoin to be undervalued, the strong claims of Bloomberg’s Mike McGlone are currently being spoken within the crypto community. According to Mike, a senior analyst and strategist at Bloomberg, a $20,000 valuation for Bitcoin is similar to the $5,000 valuation a few years ago. McGlone uses the following phrases:
$20,000, perhaps the new $5,000. As the price typically approaches very cold levels; Against global Bitcoin adoption, the situation in the early days of dwindling supply may hold.
Bitcoin adoption and dwindling supply
McGlone’ What he means by this is that BTC may have formed a bottom at $20,000. This may have been demonstrated when BTC tried to retest the previous $20,000 ATH, but crashed before falling. It was also claimed that BTC did not fall to previous ATH levels. Whether this bearish cycle will be any different remains to be seen. First, the supply of Bitcoin has dwindled due to continuous mining. Every four years, the Bitcoin halving takes place. It splits mining rewards in half every four years. The upcoming halving in 2024 will reduce the reward per block from 6.25 BTC to 3,125 BTC.
As demand continues to increase, less supply will be produced over time, so less Bitcoin will be available. Therefore, McGlone suggests that the new low point may be $ 20 thousand. As the coin and the entire crypto industry has become more popular over the years, adoption has soared. Bitcoin has been one of the best cryptos to achieve mainstream adoption. This confirms McGlone’s argument that the price may have bottomed higher than the previous $5,000 low. The laws of demand and supply seem to play well here.
What’s next for BTC?
As we have reported as Cryptokoin.com, Mike McGlone correctly predicted 10,000, 12,000 and 50,000 dollars in Bitcoin. Since the beginning of the year, the market has faced a fierce attack that has seen most cryptocurrencies lose their value at double-digit rates. Currently, many analysts and traders are convinced that crypto winter is already in the game. However, no one is quite sure how long it might take. But many expect it to last for months. In the case of BTC, it tends to bounce back after a tough period. It may be bearish in the short-term, but remain extremely bullish in the long-term.
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