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Mike McGlone, Senior Commodity Strategist at Bloomberg, recently painted a bullish story for Bitcoin. In the last 24 hours alone, data from the strategist showed that buyers are already looking for bitcoin instead of gold.
His most recent finding forecasts very high figures for Bitcoin. He said that the next milestone of the commodity would pass Amazon’s market capitalisation – once it reaches the $80,000 level. Bitcoin has risen again to more than $1 trillion, possibly in the context of President Biden’s stimulus steps. However, the commodity now has companies like Facebook ($753.12 billion) and “Tesla” ($605.27 billion) in the “review,” as McGlone said in his tweet:
“Tesla in Rear View, About $80,000 Bitcoin eyes Amazon Market Cap — Once Bitcoin’s back-and-fill process around the $1 trillion market cap is complete, we see internet pioneer Amazon.com as a potential next threshold”
Earlier, McGlone’s data showed that investors mostly prefered Bitcoin over gold in terms of their valuation store from 2017 onwards.
Studies have shown that age is the main factor behind the correlation, at least among retailers. JPMorgan strategists claimed that Bitcoin could hit $146,000 as millennials, in particular crypto over gold. A group that has become more tech-savvy than baby boomers is expected to be searching for financial protection for intangible assets rather than for precious metals.
McGlone’s forecast target of $80,000 and the resulting increase in market caps may be institutionalised, as it seems to be in the present rally. In that respect, macro-investor Raoul Pal has recently made an insightful comment. He said that as Bitcoin’s price increases, a raise in the market cap would only make Bitcoin more available to institutional investors to buy.
It would be important to see if the increase in the market cap will attract some buyers who may still be waiting to invest in BTC. A phenomena that could fuel Bitcoin’s price higher.