Bitcoin May Hit $ 400K in 2021 as ‘Risk-Free Reserve Asset’ – Bloomberg


Bitcoin (BTC) is still criticized for being too volatile, but one Bloomberg The analyst believes that, conversely, it is becoming a “risk-free” option for investors.

in a cheep On March 25, Mike McGlone, senior commodities strategist at Bloomberg Intelligence, said this year marked a watershed moment for the largest cryptocurrency.

$ 400,000 BTC would “rhyme” with the story

McGlone posted a chart of the average BTC / USD price and the Bitcoin Liquid Index, a price indicator created especially for institutional use.

“Well on its way to becoming a global digital reserve asset, a maturity leap in 2021 may be Bitcoin’s transition to a risk-free asset, in our opinion,” he wrote.

A possible price spike this year, with past behavior as context, could be as high as $ 400,000 per coin, the chart shows. This overshadows other estimates, such as the stock-to-flow estimate, which requires an average of $ 288,000 by 2024.

BTC / USD price index chart. Source: Mike McGlone / Twitter / Bloomberg Intelligence

While McGlone did not provide exact details of the factors behind From Bloomberg From the point of view, the idea of ​​Bitcoin reducing, rather than increasing, portfolio risk is the talking point of the year among businesses. New reports of treasury allocations to BTC appear frequently, with an unflappable appetite for price action.

“My mission right now is to fix the balance sheets of the world,” said Michael Saylor, CEO of MicroStrategy, one of the largest investors in Bitcoin’s treasury, in an interview with WEATHER this week.

Saylor started a trend among public companies last summer, which has seen more than $ 52 billion converted to BTC based on costs, now worth more than $ 73 billion, according to monitoring resource Bitcoin Treasuries.

What risk?

However, before Morgan Stanley becomes the first major bank to open access to Bitcoin funds to high net worth investors next week, naysayers continue to sell familiar arguments against exposure.

“Morgan Stanley limits access to cryptocurrencies to 2.5% of individual high-net-value 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 it is very risky and wants to limit the legal liability of investors who lose money, “said Peter Schiff recently. reclaimed.

Meanwhile, Fed Chairman Jerome Powell compared Bitcoin to a “substitute” for gold, much to Schiff’s chagrin, but added that it did not pose a risk to the dollar or financial stability.

As Cointelegraph reported, average returns for BTC / USD have surpassed 200% every year since the cryptocurrency’s inception.