As the year burrows deeper into its second half, Bitcoin’s performance still remains way below the predicted price levels in Q4 2020 to Q1 2021. The leading crypto asset is currently down 5.7% trading at $32,798 at the time of press.
However, according to the senior commodity strategist at Bloomberg Intelligence Michael McGlone, Bitcoin is bound to resume its bull market, which will likely have a macro-economic impact on the world economy.
“Bitcoin is poised to resume its bull-market-with profound macroeconomic implications, in our view. The benchmark digital asset represents rapidly advancing technology and deflation.”
Bitcoin’s Next Bull Run to Reach $100k
According to McGlone, Bitcoin’s ability to resume its bull run and achieve the now sentimental $100,000 is based on enduring trends which are primarily its rapidly developing technology and its massive potential impact in deflation. The enduring trends also indicate that compared to bitcoin, crude oil is entering a bear market, according to McGlone.
“What gets #Bitcoin Near $100k #CrudeOil $50- Enduring Trends”
Deflation occurs when the general level of prices in an economy goes down. Bitcoin’s fast, secure and cheap transactions have contributed to changing the landscape of the global payments infrastructure. Such strengths have attracted investments from established payment networks such as PayPal, Visa, Mastercard, and Square as well as other multiple partnerships between banks and cryptocurrency exchanges.
In terms of technology, Bitcoin has a dedicated developer community that is committed to improving the Bitcoin Network to support global-scale adoption. So far, the most popular method of adding scalability is the lightning network, which makes transactions faster, cheaper, and secure without taking up block space, and consequently preventing network congestion.
Bloomberg: BTC to Gain More Ground In 2H 2021
Earlier in the month, when bitcoin started on a low note due to a massive sell-off as traders took profits around $36,000, the benchmark coin fell to the $33000 price level. At the time, McGlone posited that technical analysis indicated that the sell-off was ill-timed.
“Selling Bitcoin on initial dips below its 50-week moving average in the past has proven a good way to lose money, even in bear markets. Our graphic depicts the first test of this mean since the crypto breached the resistance in May 2020.”
Furthermore, According to Bloomberg’s crypto outlook in the second half of 2021, bitcoin, which has gained 15% in the first six months is primed to go much higher between July and December.
“With a gain of 15% this year, we see Bitcoin primed to gain more ground in 2H on the Bloomberg Galaxy Crypto Index (BCGI) up 80 so far in 2021.”