Mike McGlone – Senior Commodity Strategist at Bloomberg – argued that the crypto winter might last longer than previous market declines and the reason for it is the “Fed’s sledgehammer.” In the next few years, though, he expects the industry to emerge stronger than ever, with Bitcoin tapping $100,000 and Ethereum trading at $6,000 by 2025.
He also touched upon “The Merge,” claiming that the event got “too hyped,” which is now causing short-term pain to investors. He also predicted that Ethereum’s greener focus will drive massive institutional adoption that will aid the protocol’s development in the years to come.
In a recent interview for Kitco News, McGlone reiterated his position that bitcoin will climb to the $100,000 price level. However, due to the “macroeconomic global winter,” the asset’s appreciation could take up to three years:
“Bitcoin to me, it’s a matter of time before it gets to $100,000. The key fact is that adoption and demand are increasing unless you expect that to reverse, which I don’t think. It will continue to appreciate; it’s just a matter of time right now.”
Speaking of Ethereum, Bloomberg’s strategist described it as a “different animal,” expecting its price to climb to $6,000 by 2025.
The reason for crypto’s rise in the future is because it is “the fastest horse in the race,” McGlone argued. In his view, the asset class has a “rapidly advancing technology advantage,” which will guide it through the bear market.
He thinks that, similar to the Dot-com bubble in the early 2000s, the current crypto winter will wash out some projects. Nonetheless, the meaningful ones will survive the turbulence and play a vital role in the future of finance, the Strategist concluded.
It is worth noting that McGlone has not always been spot on with his forecasts. At the end of last year, he envisioned that “deflationary forces” will prevail in 2022, which could help bitcoin hit $100K. In reality, though, the ongoing year has seen record inflation rates in many countries, while BTC has been trading far below the predicted level.
Ethereum’s long-anticipated shift from Proof-of-Work to Proof-of-Stake finally happened last week and was, by all means, one of the most discussed topics in the space. As some expected, the massive hype surrounding the process created a “sell the news” event, and ETH’s price significantly tumbled.
McGlone is also among those who think that the transition received too much publicity, and that is what will negatively affect the token’s valuation in the short term:
“I think the big picture about Ethereum is it’s revolutionizing finance like futures and ETFs, but right now we get through this Merge, and now we have to worry about potential bumps in the road, which we all know happens with this kind of technology.”
