This is the opinion of Bloomberg’s McGlone, who believes the price of bitcoin may have peaked at $100,000 because people are no longer reaching for it with speculation.
Gold is doing better than Bitcoin at the moment because investors prefer safe assets as the world’s financial markets react to risks.
In spite of Bitcoin falling over the past weeks and more supply in the crypto world, JPMorgan and Fundstrat are still positive about its future.
The leading cryptocurrency, Bitcoin, managed to reach $100,000 before retreating, causing analysts to get concerned. Mike McGlone of Bloomberg Intelligence says that this level may turn out to be the long-term ceiling for Bitcoin. A rise in the number of players in the market and increased guesswork, according to him, will constrain Bitcoin’s development in the future.
McGlone states that there might be no room for further speculation in cryptocurrencies. As a result of so many altcoins coming out, the value of Bitcoin could be reduced. According to him, this might stop Bitcoin from crossing $100,000 in a significant manner and limit its growth.
Gold has attracted attention from investors again.
Bitcoin’s problems have made gold attractive to people investing again. According to McGlone, gold is again doing better than both stocks and cryptocurrencies. According to him, this pattern signals that the risk-off mentality is rising in the global markets. Amid concern about possible speculation in crypto, investors are again choosing traditional safe-haven assets.
The majority of the analysts have a more positive view of things, despite McGlone’s apprehensive opinion. JPMorgan considers that Bitcoin might outshine gold and advance more in the rest of 2022. Tom Lee believes this could happen as he anticipates momentum returning for Bitcoin and it rising above commodities.
McGlone has also pointed out that there is a risk of oversupply in the whole cryptocurrency market. He mentions that the rise in the number of new tokens and coins has added pressure to the market value. Because of this growth, Bitcoin might become less important and its worth as a digital store of value could decrease.
Even though there are signs of market cooling, experts have varied views on whether Bitcoin will manage to keep or surpass its current price now. Because things are moving so quickly in the macroeconomy and the market, cryptocurrency and precious metals markets are attracting investors’ attention for different reasons.
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