In the latest Bloomberg crypto newsletter, analyst Mike McGlone points out that bitcoin “has had a tendency of adding zeroes to its price,” adding that the asset previously went from $1,000 to $10,000 in under four years.
This trend has been somewhat decelerated by the maturation of the asset but it has by no means stopped, McGlone says, adding that it could soar again, but perhaps the time horizon will be longer: “If the crypto echoes its past gains, with some maturation, about double the time period it took to add a zero to $1,000 could get its price to $100,000 in 2025.”
A bold projection? Perhaps, but it is actually pretty conservative compared to other forecasts that are viewed as credible in the world of crypto.
Silicon Valley bitcoin advocate Tim Draper, who predicted that the top crypto would pass $10,000 in 2017 (it touched $20,000), believes it will reach $250,000 by the end of 2022 or early 2023.
TV presenter and analyst Max Keiser, who has been imploring pretty well anyone willing to listen to buy the crypto since back when it could be snatched top for a buck, has adjusted upwards his price target from $100,000 to $400,000, an outcome he believes is inevitable due to government money printing.
The crypto analyst PlanB recently said bitcoin is still moving in line with the Stock-to-Flow Model, which forecasts a $100,000 price by late 2020.
Supply and demand
McGlone suggests that fundamental supply and demand factors support bitcoin’s ascent. He points out that about 90% of the total supply has been mined and institutional demand is rising.
McGlone’s believes bitcoin could revisit 2019’s high of $14,000 by the end of 2020.
McGlone tweeted: “Bitcoin should continue doing what it has for most of its nascent existence, appreciating in price on the back of increasing adoption, but at a slower pace as we see it.”
McGlone’s optimism, however, does not extend to the altcoins: “With the exception of stablecoins, the rest of the crypto market is subject to excess supply and competition.”