KEY POINTS

  • Bitcoin is $2,000 from its previous all-time high
  • Historical data suggests a $170,000 future price for the cryptocurrency 
  • People are viewing Bitcoin as the digital version of gold.

As Bitcoin gets closer to its previous all-time high, an analyst from Bloomberg said he’s bullish on what’s next for the benchmark cryptocurrency’s future price and even predicted a $170,000 price point by 2022.

Bitcoin closed Thursday at $17,821, slightly above the previous day and also a new 2020 high. It’s also the highest it has reached in the last three years. With Bitcoin now just $2,000 away from its previous high of just below $20,000, analyst Mike McGlone from Bloomberg believes the dominant cryptocurrency is not yet finished in its ascent.

McGlone said that since Bitcoin added one in front of its number compared to last year, it will likely add a zero to the back of its number next year or by 2022. “If you look at past performance, which is potentially indicative of the future, next year or two could add a zero to the back of the number,” he said on Bloomberg TV.

Bitcoin ended 2019 at $7,000 and is now at $17,000. This means McGlone was right that the cryptocurrency added a one at the front of its number. If Bitcoin adds zero at the back of its number, that’s a price of $170,000, as McGlone predicted.

McGlone pointed out that Bitcoin’s price increase is because of people’s perception that it is digital gold, Cointelegraph reported. Gold, a store of value, has also breached past $2,000 in a new all-time high and is now consolidating.  With that, Bitcoin could likely be consolidating at this price point as well, with $20,000 only acting as short-term resistance. “I’m afraid it’s probably going to do what gold did. It got to $2,000, and then that’s been consolidating in a bull market since,” McGlone continued.

Finally, McGlone mentioned that institutional FOMO (fear of missing out) is also the likely reason why the new price run is different from the one in 2017. Both Microstrategy, a billion-dollar company, and payments firm Square announced that they have put Bitcoin as part of their reserves. PayPal Holdings Inc. recently allowed U.S. customers to purchase Bitcoin. 

Bitcoin In this photo illustration a visual representation of the digital currency Bitcoin sinks into water in London, England, Aug. 15, 2018. Photo: Dan Kitwood/Getty Images