Bloomberg analyst: Bitcoin at $10,000 will still be appealing
Bloomberg analyst: Bitcoin at $10,000 will still be appealing
Bloomberg analyst Mike McGlone highlights the clear correlation between Bitcoin and stock prices that we are seeing right now. The correlation between the two is now the strongest in history.
McGlone compares Bitcoin and Amazon stock: a $1 investment in Bitcoin in 2011 significantly increased profits in just 12 years, while a similar return on investment in Amazon took twice as long.
The expert is also skeptical about Bitcoin's rapid move into the mainstream. He warned of the risks of falling cryptocurrency prices when mass investment begins.
Bloomberg analyst Mike McGlone of X (formerly Twitter) explained in detail how vulnerable assets, which include Bitcoin, could experience a real price shock as investment volumes increase.
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"The lessons of high-performing, widely hyped assets show price reversion may be the greater risk once the masses jump on board."
McGlone said Bitcoin has grown 26,000 times in the 12 years since it first sold for $1 in 2011. Amazon's stock, for example, has grown 130%, but it took 25 years to do so.
"Even if Bitcoin falls more than 50%, it will still outperform Amazon. At $10,000, Bitcoin will still have unprecedented performance," McGlone said confidently.
At the time of publication, Bitcoin's price is $26,008,036 and its market capitalization is $506,388,281,644.
Further reading: Binance may leave Russia completely.
