The most prominent digital asset, Bitcoin, is currently experiencing its worst period due to the collapse of the crypto market, which has led to the coin’s value dropping from $30,000 to $21,491 at the time of writing.
Many finance experts believe that the top cryptocurrency is vastly undervalued. However, not everyone shares that belief. Bloomberg’s chief analyst, Mike McGlone, made his thoughts about Bitcoin’s value known.
According to McGlone, a $20k valuation for Bitcoin is like the $5k value a few years back.
“$20,000 Bitcoin Maybe the New $5,000 – The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels.”
How Bitcoin’s New Bottom Could be $20,000
According to Mike McGlone, BTC can establish a bottom at $20,000. In the past, BTC tried to retest the previous $20,000 ATH but bumped before it could drop to hit it.
Also, many analysts believe that BTC does not fall to previous ATH levels. Nevertheless, there is no clue whether this bearish cycle will differ.
In the past, continuous mining has reduced the supply of the top digital asset. After every four years, Bitcoin halving occurs, splitting the mining rewards in half. Hence, the impending halving in 2024 will reduce the per block reward from 6.25 BTC to 3.125 BTC.
As smaller supply is produced over time while demand keeps rising, fewer BTCs would be available for people. Therefore, Mike’s analysis suggests that the new bottom could be $20,000.
Adoption has also increased as the cryptocurrency, and the entire crypto industry gets more popular over the years. As a result, Bitcoin has been one of the top digital currencies that have attained full-blown adoption.
Hence, McGlone’s argument remains valid because the price is likely to have bottomed out at a higher level than the previous $5,000. The laws of demand and supply seem to play OK here.
What to Expect From Bitcoin
The market has been inconsistent since the start of 2022, overseeing most coins losing their value by large margins. At the moment, many analysts and traders are convinced that crypto winter is happening, and it could last for months.
Despite the rough period, BTC’s quality as a top cryptocurrency is undisputed because its value always bounces back in the long run.
Mike McGlone recently urged Gold Investors to acquire Bitcoin, saying,
“Most money managers on the planet who have been holding gold like forever are at greater risk if they do not have Bitcoin in that portfolio of gold. It is shocking to see people put all their eggs in one basket with gold,”