Mike McGlone Says Bitcoin Is Ahead of the Adoption Race
Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, released a report revealing his opinion that Bitcoin is ahead in the adoption race within the crypto domain. He noted the possibility of the cryptocurrency’s continuous rise this year.
The report highlighted two factors helping Bitcoin. One, it is characterized by fixed supply; two, it continues to be adopted as an asset to store value. According to McGlone, the supply of Bitcoin is ready to surge by 2.5 percent in 2020, on its way to “zero growth.”
The analyst mentioned that the volatility of the world’s largest crypto is positioned for continuous fall, anticipating it to secure support at $6k level, and to be resisted at $10k. He also noted that there is likelihood of Bitcoin moving towards its 2019 high near $14k, but will not be able to hold that level for long. He added that BTC could stay within the range it maintained in 2019.
As regards other cryptos, the analyst mentioned the existence of numerous cryptocurrency assets in competition to be adopted and this will maintain market prices towards the downside. According to him, there is a need for the swiftly increasing new coin supply to decline for cryptocurrency assets to appreciate ahead. In 2019, an aggregate of 3,000 new cryptos were introduced to the market.
The graphics reveal a halt in new coin supply at the end of 2018 and coincided with a bottom on the MVIS CryptoCompare Digital Assets 100 Small-Cap Index, a market cap-weighted index that tracks the performance of the 50 smallest digital assets in the MVIS CryptoCompare Digital Assets 100 Index.
Featured image courtesy of Shutterstock. Source: Cryptopress.