As a Risk-Off Asset, Bitcoin is Predicted to Reach $400K This Year

Bloomberg Intelligence Senior Commodity Strategist Mike McGlone pointed out over a tweet that the world’s largest cryptocurrency might conquer all fiats and make a mark on history. He pointed out that BTC/USD may easily go 8x in 202, easily pushing its price to up to $400,000. He did this by comparing price indices of BTC/USD alongside that of the Bitcoin Liquid Index.

Source: Mike McGlone

McGlone stated that Bitcoin is not that far from becoming a global digital reserve asset, in which little ways down the road would turn the world’s largest crypto coin into a risk-off asset. Many other institutional players share the view. MicroStrategy CEO Michael Saylor chimes in on the possible Bitcoin boom and has converted roughly $52 billion to BTC. This only proves that Bitcoin has established itself as a low-risk investment, a factor that has led to colossal treasury allocations in BTC despite its current surge in price.

If anything, the price movement of the asset has drawn in more institutional money, with Morgan Stanley now open to accepting the crypto king. Morgan Stanley is the first major bank to do so, raking in roughly 2 million dollars worth of assets despite the 2.5% limit of crypto access for high net worth individual accounts. This only points to people still being aware of cryptocurrency risks, in line with Fed Chair Jerome Powell’s view that Bitcoin would more like gold in the future. 

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