Bitcoin could reach $100K as it transitions from a risk-on to a risk-off global store of value

While Bitcoin has declined since the start of 2022, many experts believe that the crypto will eventually recover later this year and might even surpass the all-time high set last year. For instance, Bloomberg senior commodity analyst Mike McGlone believes that BTC has the potential to reach $100,000 this year.

McGlone said that the Fed will raise interest rates to combat inflation, which could affect risk-on assets like crypto. However, the analyst believes that this will be a short-term trend, and Bitcoin will eventually recover and challenge last year’s all-time high.

“Bitcoin is in a unique phase, I think, of transitioning from a risk-on to risk-off global digital store of value, replacing gold and becoming global collateral,” the analyst told Cointelegraph. “So I think that's going to be happening this year.”

He views the current bearish sentiment as a sight of market consolidation. “More allocators are looking to buy it [BTC] on dips,” the analyst said. “We’re seeing the shorter-term speculators getting stuffed out,

McGlone believes that the crypto has the potential to reach $100,000, surpassing its all-time high set in November 2021 above $67,000. “I think it’s building a pretty good based around $40,000,” he added. “It’s more likely to appreciate towards $100,000.”

The analysts also noted that Bitcoin has already proven itself as digital gold. In fact, Bitcoin is slowly eating up the precious metal’s share as a store of value asset.

“The key facts are there’s outflow in gold, also known as gold ETFs, pretty significant outflows,” McGlone explained. “And there’s clear pretty significant inflows into Bitcoin from all measures of investors economy, sovereign wealth, treasuries, pension funds, endowments, individual investors. You ask your typical millennial these days – they don’t care about gold, they care about Bitcoin.”

The analyst is also bullish on Ethereum as the main infrastructure for non-fungible tokens (NFTs) and decentralized finance projects. However, his optimism does not extend to the broader crypto market as a whole as he believes that a large number of altcoins could be merely speculative bets.

“Simple rules of economics do not favor prices of a market where there's an unlimited supply and ease of entry,” he explained. “That's the crypto market.”

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