According to Mike McGlone, a senior commodity strategist at Bloomberg, Bitcoin’s price may soon witness $50k following the movement of funds from gold into the digital asset.
McGlone expressed his thoughts in the February 2021 edition of the “Bloomberg Crypto Outlook.” He pointed out that Bitcoin has been able to hold the $30k mark for a while. When combined with “increasing institutional adoption and the potential for the benchmark to become a global reserve asset,” Bitcoin could move toward $50k. The analyst wrote:
In a world going digital, it’s logical to expect more funds to flow toward Bitcoin and away from precious metals. Outflows from gold exchange traded funds and inflows for products tracking the benchmark crypto support a potential paradigm shift.
True to the assertions of McGlone, a handful of institutional investors are beginning to choose Bitcoin over gold. MicroStrategy’s Michael Saylor explaining why his company decided to invest in Bitcoin said that gold’s ROI is not compelling enough.
McGlone, in his report, noted that funds were moving from the yellow metal into Bitcoin. Furthermore, Grayscale’s Bitcoin Trust has grown to nearly 700,000 BTC, while gold ETFs have dropped to about 109 million ounces from 111 million in October last year.