Bloomberg Intelligence chief commodities strategist Mike McGlone shared his price forecast for Bitcoin on Tuesday. Despite the recent price crash in the market, the analyst still predicts a price increase for the main cryptocurrency in the coming months. Despite the fall, Bitcoin could reach $ 100,000.
Bitcoin is going through a severe price correction after falling close to 50% from its all-time high last week. The downtrend began on May 12, when Elon Musk suspended Bitcoin payments for Tesla vehicles due to environmental concerns.
Then a series of measures reiterating China’s Bitcoin trading and mining bans accentuated the decline. Announcements from the US government regarding regulation of the crypto sector have also contributed to the drop. The crash wasn’t just for the top cryptocurrency, as most digital assets posted double-digit percentage losses.
Despite this scenario, McGlone remains bullish on an upcoming bull run for Bitcoin. At the end of March the Bloomberg analyst had already shared a graph that predicted a rise of the coin above $ 300,000 by the end of 2021.
Recent events do not affect increase to USD 100,000
McGlone took to Twitter on Tuesday to share his thoughts on whether Bitcoin’s massive correction will delay the flagship cryptocurrency reaching $ 100,000. The analyst observed that the price pullback was caused by the same reasons that support the bull market for Bitcoin on its way to that price level.
Bitcoin has pulled back for reasons that support a prolonged bull market and a path to $ 100,000.
#Bitcoin has backed up for reasons that support an extended bull market and a path to $ 100K. A bit hot in April, a primary factor cited for the crypto’s correction – excessive energy use – represents the strength of the world’s largest decentralized network, and getting greener pic.twitter.com/l6STK94ZNO
– Mike McGlone (@ mikemcglone11) May 25, 2021
The Bloomberg strategist had already made a $ 100,000 prediction for Bitcoin in October of last year. At the time he had shared in a tweet. Noting that the growth in the adoption of the cryptocurrency added to its scarce offer, would boost the value of the asset, although he warned that this rise would slow down over time.
Bitcoin shows signs of recovery after recent crash
Despite the Bitcoin crash, Bitcoin’s hash rate has been fluctuating in recent weeks after the price of the major cryptocurrency fell close to 50% from its all-time high. After some price recovery, the Bitcoin hashrate also appears to start to recover slightly this Tuesday.
Although uncertainty continues around the commercial evolution of Bitcoin, analysts maintain that in this period there are several companies that are taking advantage and beginning to take the step towards this market. As is the case with Globant, which recently invested half a million dollars to start creating its BTC fund.
Many critics claim that this is nothing compared to the capital movements made by other companies. For analysts, these types of measures have a more symbolic weight, since they imply adoption at the business level.
For his part, after the fall derived from the announcements made by Tesla several days ago, the CEO of said company, Elon Musk, proceeded to meet with US Bitcoin miners to promote the use of renewable energy within this industry. This meeting was facilitated by the CEO of MicroStrategy, Michael Saylor. Who assured that the intention of this meeting is the creation of a BTC Mining Council that seeks to improve the conditions of this practice for the future.
Bitcoin falls slightly this May 25
While Bitcoin dawns slightly lower this May 25, the main altcoins of this ecosystem react differently, some of them registering quite pronounced fluctuations.
Despite the Bitcoin crash, Ethereum Classic (ETC) posted noticeable gains in contrast to the rest of the market. With an increase of 3.71%. On the other hand, exponents such as Ethereum (ETH), Binance Coin (BNB), Bitcoin Cash (BCH), Uniswap (UNI), Litecoin (LTC) among many others, present falls of -2% to -4%, approximately. This is pointed out by our internal crypto online tool.
Computer company Globant, valued at $ 8.6 billion, reveals itself as the latest institutional buyer of BTC
Documents filed with the United States Securities Commission reveal that the large computer conglomerate Globant has become the latest major company to invest in Bitcoin.
The firm declared its purchases of crypto assets during the first three months of the year in a statement to the SEC made on May 25 in which it stated:
«During the first quarter of 2021, the company bought a total of in crypto assets. Composed solely of Bitcoin.
The company’s cryptocurrency investments and expenditures were listed among its “intangible assets,” along with the licenses. Customer relationships, customer contracts, and non-competition agreements held by the company.
Globant claimed that it declares Bitcoin as an intangible asset because it “lacks physical form and there is no limit to its useful life.” He added that any profit made on digital assets will not be recognized until they are sold.