Senior Bloomberg strategist predicts Bitcoin could hit $81K soon

Bitcoin (CRYPTO:BTC) could experience a substantial price increase to $81,000, according to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence.

Despite his generally cautious outlook, McGlone notes that the Bitcoin to SP 500 ratio, currently at 11x, has previously reached 15x in Q1 2021.

He suggests that if Bitcoin achieves this 15x ratio again while the SP 500 Index remains steady, Bitcoin's price could surge to approximately $81,818.

Recently, Bitcoin's price dipped below $60,000 after briefly exceeding $65,000, following the Federal Reserve's pivot towards lower interest rates.

While some see this as a positive sign, McGlone remains wary, implying that Bitcoin's recent stagnation could indicate a tougher path forward.

He questioned, "Is the fastest horse signaling the race is over?" referring to the potential slowdown in market momentum following the Fed's liquidity injections and recent Bitcoin ETF approvals.

McGlone's analysis compares Bitcoin's market capitalisation to that of the SP 500 Index, which is calculated based on the total market cap of its component companies.

If Bitcoin, which has previously reached a 15x multiple of the SP 500, manages to hit that ratio again, it could trigger a strong bullish run for the cryptocurrency.

This outlook aligns with other optimistic predictions, such as Blockstream CEO Adam Back's recent forecast targeting $80,000 for Bitcoin.

Furthermore, according to McGlone, if the SP 500 Index continues to grow as it has in 2024 and Bitcoin's price again reaches 15 times the index, BTC could trade above $98,000.

This potential for growth is significant, as the last time Bitcoin achieved this multiple was ten months after its third halving.

With the recent fourth halving occurring just five months ago, there may still be ample room for further gains in this bull market cycle.

As the market shakeout ends, those holding Bitcoin may see substantial profits ahead.

At the time of reporting, the Bitcoin price was $57,806.74.