While Bitcoin price has performed well this year, Bloomberg’s senior commodities strategist Mike McGlone still believes in a parabolic high in 2021. Here are the reasons for a similar high in 2013 and 2017 next year according to the analyst.
November 5, 2020 | AtoZ Markets – Bitcoin may experience “parabolic” growth in 2021, similar to the soars in the price of the first cryptocurrency in 2013 and 2017. This opinion was expressed by Mike McGlone, a senior commodities strategist at Bloomberg Intelligence.
Reasons why Bitcoin may see parabolic growth in 2021
According to McGlone, parabolic growth can happen in the case of repeating patterns that could be observed in the years he indicated.
#Bitcoin may undergo a parabolic 2021, as it did in 2013 and 2017, if previous patterns play out again. New highs are a next potential iteration and may be only a matter of time unless something we don't foresee trips up the trend of greater adoption and demand vs. limited supply pic.twitter.com/w742J7bXfC— Mike McGlone (@mikemcglone11) November 4, 2020
The halving that took place in May is considered by many investors to be one of the main factors that can push the price of bitcoin to new highs. The result of the decrease in the miner’s reward from 12.5 BTC to 6.25 BTC was, for example, the fact that the annual inflation of bitcoin was lower than the corresponding indicator of gold, the most recognized protective asset by investors.
The first halving took place in 2012, and at the end of 2013, the price of bitcoin for the first time rose above $ 1000.
After the second Bitcoin halving in July 2016, Bitcoin began to gradually grow and reached an all-time high of about $ 20,000 in December 2017.
Recall that at the end of October, the monthly candle on the Bitcoin chart for the first time since December 2017 closed at a level above $ 13,000.
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