- Bloomberg Intelligence Senior Macro Strategist Mike McGlone believes that Bitcoin (BTC) has enough fundamental backing to experience an impressive price run in the coming year, particularly around the time of the halving event in the second quarter of 2024.
- Although Bitcoin’s price has decreased by more than 4.2% over the past 24 hours, it has been performing well overall this month. However, to reach a price target of $100,000, Bitcoin may need to decouple from its correlation with the S&P 500.
According to Bloomberg Intelligence Senior Macro Strategist Mike McGlone, Bitcoin (BTC) has enough fundamental backing to experience a significant price run in the coming year, despite its current status in the digital currency ecosystem. In an interview with Scott Melker, McGlone based his assumptions on the forthcoming halving event, scheduled for the second quarter of 2024, and believes that Bitcoin is being set up for an impressive trajectory.
“The bottom line is astute investors, institutions on the planet all realize every day that goes by is they need part of this asset. I think by the time we get to ’24, that halving, we’re gonna be talking about a pretty severe recession, all politics leaning Republican, at least presidential, and it’s just going to be a great setup next year. I’m really looking forward to it,” said McGlone.
While it remains to be seen what the price of Bitcoin will be and when it will reach its target, McGlone believes that a $100,000 price target is achievable and mild for the digital currency. However, to achieve this goal, Bitcoin may need to decouple from its correlation with the S&P 500, which is currently the ultimate decider of volatility in the market.
“The current trajectory is Bitcoin is showing it’s becoming more of a global digital reserve asset and potentially a store value as the stock market volatility is high. The key thing is let’s say S&P is making a new low and heads toward $3,000. Let’s see how Bitcoin reacts. It’d be wonderful if it doesn’t go below $20,000. But we got to see. I don’t know. Long term, as we get through this period, there’ll be more significant signals that Bitcoin is going to go up to $100,000,” McGlone added.
Despite its recent decline in price by more than 4.2% over the past 24 hours, Bitcoin has had a strong month overall. As the largest digital currency by market capitalization, Bitcoin has remained a significant benchmark for measuring the evolution of the broader cryptocurrency ecosystem. Although there are still many uncertainties surrounding the future of Bitcoin, the upcoming halving event and potential decoupling from the S&P 500 are likely to have a significant impact on its price and trajectory in the coming years.
