Bloomberg’s Mike McGlone has emerged to mention that the price of bitcoin could potentially reach $170,000 come 2022.
McGlone Is Always There When Bitcoin Spikes
McGlone is a leading expert when it comes to bitcoin and the price trends its follows. He commented in a recent interview that over the past year, bitcoin has followed a specific pattern of adding a zero to its price following every 12 months. For example, he comments that bitcoin ended 2019 in the $7,000 range. Now, it is trading for more than $10,000 more, thereby adding another zero to its string of numbers since then.
Granted bitcoin does the same thing in 2021, the currency could find itself trading for $170,000 or $180,000. This would all be fine and dandy, though there are two issues with this prediction. First off, it’s a bit of a stretch to assume that bitcoin would just add another zero to its price each year. As a matter of fact, except for now and 2019, there is no evidence whatsoever that this has been – or will ever be – a regular pattern for the world’s leading cryptocurrency by market cap.
Remember what bitcoin was trading for at the end of 2018? It was going for about $4,000 at the time, which means that between the end of that year and the following one, bitcoin only added about $3,000 to its overall price. For bitcoin to add another zero to its price by 2022, it would have to jump up by more than $100,000 within the same timeframe, which seems largely unrealistic as even by 2020’s terms, the currency has only added about $10K to its overall position.
Second, let’s assume for the sake of argument that bitcoin is certainly capable of reaching such a large and lofty position in such a short period. Well, according to Citibank, the price for bitcoin at the end of 2021 will be nearly double what McGlone is predicting. A new report from Citibank analyst Tom Fitzpatrick suggests that the world’s most popular cryptocurrency could wind up trading beyond $318,000 by the time 2021 is over.
Well, frankly, $318K is a lot more impressive than $170K. While McGlone offers a high number, it’s not as easy to get excited compared with something above $300,000. Either way, McGlone goes into detail regarding his prediction in a recent interview, claiming:
If you look at past performance, which is potentially indicative of the future, next year or two could add a zero to the back of the number.
Following the Gold Pattern?
He says that the primary reason for bitcoin’s recent bull run is because people now see it as a store of value similar with gold. He explains:
I’m afraid it’s probably going to do what gold did. It got to $2,000, and then that’s been consolidating in a bull market since.