Here’s How Bitcoin Price May Soar to $81,000 Soon, According to Bloomberg Senior Strategist

Bitcoin price fell below $60,000 on Tuesday and Wednesday after posting big gains over the weekend following the Fed’s pivot to lower interest rates. The spot price briefly topped $65,000 before dropping back down.

But Bloomberg’s McGlone is bearish despite the market moves. He believes BTC’s apparent lack of enthusiasm could signal a slow road ahead for Web3’s highly secure property.

Bitcoin to Multiple US Stocks

Does the fastest horse signal that the race is over? About 11 times now, the #BitcoinThe /S&P 500 high was 15x in 1Q20 and the low this year was 14x. The biggest money bomb in history and past US ETF launches may suggest a hangover, a swing of the pendulum towards 7x Bitcoin/SPX… pic.twitter.com/dGGk0bYKRo

— Mike McGlone (@mikemcglone11) August 27, 2024

On Tuesday, McGlone asked his followers on X: “Does the fastest horse mean the race is over?” He said the Fed’s biggest money pump and ETF listings in the back window “may suggest a hangover” for bitcoin.

The Bloomberg Intelligence strategist’s argument is that the relationship between the price of bitcoin and the S&P 500 index looks anemic compared to recent market history. “Now about 11x, #Bitcoin/S&P 500 peak was 15x in (1Q21) and the lowest high this year was 14x.”

It’s a like-for-like comparison because bitcoin is a factor of its market capitalization and the S&P 500 is calculated from the market capitalization of the companies that make it up, using an index divisor for all the math chips that watch CNBC

But if bitcoin has reached 15 times the S&P 500 once, in March 2021, and nearly did so this year, then it may do so again. That’s what BTC bulls like Marathon Digital are counting on in the short term when they double down on the asset.

Bitcoin Price at $81,000?

If bitcoin were to return to 15 times the S&P500, it would reach $81,818 even if the index stayed at the same level today. This could mean that there is plenty of room left for the larger crypto to gather more in this turn of the supercycle.

This number is interesting because Blockstream CEO Adam Back recently pointed to an $80,000 bitcoin price prediction based on a hedge fund analyst’s forecast for MicroStrategy stock. McGlone says the ratio shows weakness in the BTC markets, adding that Bitcoin is suffering from a hangover. However, it could indicate that the price of BTC is lower than the cyclical trends.

If the S&P 500 index grows at the pace of its 2024 returns and the price of bitcoin returns to 15 times its level, BTC could be changing hands above $98,000. So this multiple shows that there is plenty of room for this bull to run.

Also, the last time bitcoin markets achieved this multiple was ten months after the third half. So far, only five months have passed since the fourth half of this year.

When that hangover wears off, some diamond hands can be profitable. Hair of the dog, anyone?

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