Bloomberg’s senior commodity strategist has claimed that the first-born cryptocurrency BTC is well on its way to becoming a global reserve asset that complements the United States dollar.
Bloomberg’s Crypto Outlook called $100,000 BTC and $5,000 Ether the “path of least resistance” after the two assets survived a more than 50% correction through the summer.
While predictions for six-figure Bitcoin are nothing new, the long-term forecast puts BTC near the center of the global financial system. Bitcoin’s most passionate supporters have long argued that the cryptocurrency would mature to become a global reserve asset. Their conviction stems from Bitcoin’s superior monetary policy in an era where central banks have inflated the money supply, contributing to wealth inequality and higher prices for goods, services and assets.
Bitcoin’s value proposition has also been recognized within institutional circles, with JPMorgan Chase and BlackRock arguing that BTC is eroding gold’s market share as a storehold of wealth.
Bitcoin price broke towards $51,000 on Friday as the broader cryptocurrency market rallied to over three-month highs. The total market capitalization of all crypto currencies reached $2.4 trillion during Friday’s high compared with a low of around $1.2 trillion in mid-July.
