• Mike McGlone believes that based on historical patterns and trends, Bitcoin is likelier to reach $60,000 more than drop to $20,000.
• The strategist has further backed Bitcoin to outperform Bitcoin as it presents a better investment opportunity.

Bitcoin (BTC) continues to trade in the $31,000 and $35,000 range. This is despite a recent scare when the digital asset dipped under $30,000. Senior Bloomberg strategist Mike McGlone has shared his short term and long term price predictions. In his prediction, the strategist says that Bitcoin is more likely to go higher than go lower.

McGlone has likened Bitcoin to Gold, calling it a better investment. He further tipped the digital asset to outperform the precious metal. In 2020, Bitcoin was able to do this as the world economy came under pressure due to the COVID-19 pandemic. Although 2021 was largely viewed as a year of recovery, the economy has been slow-moving which has raised concerns across global markets. With inflation looming BTC is tipped to act as a hedge further promoting its adoption.

By 2025, the strategist expects BTC to have reached $100,000. This is a prediction shared by many market pundits, several of whom expect this to be achieved by the end of the year. For now, the strategist expects Bitcoin to target $60,000 and is less likely to dump to $20,000.

This prediction contradicts other Bloomberg strategists led by Nikolaos Panigirtzoglou who expect BTC to sink to the $25,000 levels. Another who holds a bearish outlook is Guggenheim CIO Scott Minerd who recently predicted that Bitcoin had not found its bottom and was to sink as far as $15,000.

Read More: Guggenheim’s Scott Minerd warns investors that Bitcoin could further shed 50% before finding real bottom

Bitcoin ready to accelerate

Following last weeks upside momentum, even the pessimistic are beginning to change their views. After weeks of sideways movement, BTC looks poised to breakout upwards.

Market analyst Sashimi Nakamoto wrote on CryptoQuant;

If BTC retains the lower range of 30K, shorts will begin to squeeze as BTC moves to the middle point of the range, likely accelerating in the coming days/weeks,

At the time of press, BTC is up by nearly 4 percent and is exchanging for just under $34,000 according to our data.

The asset staged a comeback earlier in the weeks boosted by the B-Word conference held earlier in the week involving the likes of Twitter’s Jack Dorsey, Tesla’s Elon Musk, and ARK Invest’s Cathie Wood. In it, Musk revealed that Tesla was likely to resume accepting BTC in the future.

Read More: Besides Bitcoin, Elon Musk holds Ether and Dogecoin, says Tesla will accept BTC payments

• Brothers to El Salvador president are reportedly meeting with foreign investors to launch a new cryptocurrency.
• Like the Bitcoin Law, the brothers revealed that the digital asset would be introduced at the end of the year.

El Faro, a Latin American digital newspaper reported on Friday that El Salvador is looking into issuing a cryptocurrency. The report further explains that the brothers of El Salvador President Nayib Bukele, are leading the project. The two, Ibrajim and Yusef Bukele, who are said to be representing the president, have been meeting with foreign investors. The cryptocurrency is a stablecoin dubbed ‘Colon dollar.’

The new developments come amidst concerns about the country’s planned Bitcoin adoption as a legal tender. As CNF reported, JPMorgan is one of the many organisations that have questioned the validity of the decision. According to the investment bank, Bitcoin is likely to fail as a medium of exchange due to its illiquidity and nature of Bitcoin volume which places limitations.

Read More: JPMorgan: El Salvador’s use of Bitcoin for payments could face ‘limitation’

Regardless, the country is forging ahead and the law is set to take effect in September. With a dynamic, young and innovative president, El Salvador will become the first country to make Bitcoin legal tender. In September when the law takes full effect, every Salvadorian will legally be required to accept Bitcoin as payment for goods and services rendered.

However, it is likely the president is looking to complement Bitcoin with a native cryptocurrency. To achieve this, the newspaper says that those involved with the project have met with representatives of Cardano, Algorand and WhizGrid at different times. The newspaper also sought comments from the government spokesperson who refuted the claim saying that the plan was “discarded.”

El Salvador is set to be the second Latin American country to launch a cryptocurrency. In 2017, Venezuelan President Nicholas Maduro launched the country’s native token dubbed the Petro. The cryptocurrency is supposed to be backed by the country’s oil and mineral resources. Additionally, the government planned to use it to help the nation circumnavigate US sanctions. Unfortunately, due to poor governance, the project has largely been a failure.

Weiss Cryptocurrency Ratings reviewed the Petro Whitepaper and disclosed that there was no method on how the Petro price would be based on oil or mineral, and as such, it declared that the currency “is a worthless token.”

Read More: Bitcoin vs. Petro: Venezuela announces payment in Petros for employees and pensioners

• Bitcoin has portrayed weakness after slipping below $32,000 – the asset risks breaking below $30,000 by the end of the week.
• A recent report shows that US inflation is approaching the 2008 record levels.

Bitcoin has for the second day in a row, extended its decline to hit a 17 day low. The latest move sees the digital asset slip below $32,000, one of its critical supports. In the past, a breakdown has seen it find sufficient support at $30,000 before rebounding. In its drop, Bitcoin has managed to drag the wider market with it. Ethereum for instance has extended its weekly loss to over 20 percent after a 6 percent drop in the last 24 hours.

Altcoins have been hit hard by the recent move. A majority have wiped out between 5 percent and 10 percent. The total market cap has wiped out nearly 5 percent in the last 24 hours.

Bitcoin has in the last week wiped out roughly 8 percent according to our data. The downward trend comes despite recent data showing that traders have consistently been withdrawing their Bitcoin from centralized exchanges. The accumulation is viewed as a major sign of optimism on the price trend.

Read More: Bitcoin back in accumulation suggesting imminent breakout but institutions managing risk

For the last few weeks, market pundits have been divided on the direction that Bitcoin prices will take. One of the most controversial events that has analysts divided is the Grayscale Bitcoin trust shares unlocking. They have in part been blamed for the current volatility being witnessed in the market.

With prices in recent weeks stagnating, it is tipped that most holders will look to cash out. A majority of these investors bought in April when prices were at the peak of $65,000. According to the “Crypto, Fear & Greed Index,” investors are currently hanging on “extreme fear.”

Read More: JPMorgan strategists expects Bitcoin to reach $25,000 following Grayscale GBTC shares unlocking

Bitcoin set up for gains as inflation looms

Today’s drop is correlated to the global stock drop. This has been triggered by the recent report showing the rise of the U.S consumer price index which reached 5.4 percent compared with last year, and well above the 4.9 percent economists predicted. The report which was released on Tuesday revealed that the economy is strained with demand surpassing supply. The Fed and other global managers maintain that inflation will be transitionary. However, more economists and researchers including Deutsche Bank research strategist Jim Reid are convinced that inflation could last longer. Reid added;

Either that, or the transitory definition will have to be revised to cover several quarters rather than just months,”

This is good news for Bitcoin which is viewed as a hedge against inflation. Although the initial shock in the global markets tends to affect Bitcoin as well, the digital asset usually breaks away to act as a hedge against traditional markets.