Bitcoin’s moon mission, initiated with a surge above US$50K this week, will likely blast higher into Q4, according to Bloomberg’s senior commodity strategist Mike McGlone.

The respected strategist believes the $50K BTC psychological resistance zone, which has been a hard nut to crack ever since the big May dump, is likely flipping to support.

And he also thinks a US$100,000 Bitcoin would be “meager” by its pump-tastic standards, without going on to give any particular Cathie Wood-like US$500K predictions.

McGlone published his analysis this week in the October 2021 edition of the Bloomberg Galaxy Crypto Index. Pulling out the crystal ball (backed by data and research, naturally), the analyst said, “Bitcoin looks like a rested and discounted bull market,” adding:

“If the benchmark crypto catches up a bit to the Bloomberg Galaxy Crypto Index (BGCI), Bitcoin would be closer to $70,000.”

McGlone’s report also indicates Bitcoin trades at a discount compared with traditional stock market indexes like the Nasdaq: “Rising equities should keep high-beta Bitcoin buoyant, but if the stock market drops, more stimulus will solidify underpinnings for the digital reserve asset,” he said.

 

Bullish on Ethereum, too, cites US$5K target

“The bigger surprises for us at the end of 2021 will be if Bitcoin and Ethereum prices aren’t higher,” continued McGlone, including the number two crypto by market cap in his outlook.

Much like Bitcoin, he said Ethereum “resembles a consolidating and discounted bull market,” noting it’s “likely still the early price-discovery days” for the dominant, most widely adopted smart-contract platform.

The Bloomberg report particularly highlights the potential supply-squeeze factor coupled with rising demand, which Ethereum bulls have been touting ever since the introduction of the EIP-1559 gas fee-burning mechanism in August.

“Demand and adoption are rising,” said McGlone. As is “plunging supply”.

According to Etherchain.org, about 430,000 ETH were burned from August-October 4, notes the report. “That’s just over 50 per cent of new supply, based on the monthly average closer to 410,000 since August 2020.”

And here’s an even fresher update on the burn figure…

As for an ETH price outlook? McGlone has a target of US$5,000 – “the path of least resistance is up”.

 

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