Benzinga | Mar 5, 2021 09:54AM EST

Analyst Who Predicted $50,000 Bitcoin Sees Key Metric Indicating 'March To $100,000'

Bitcoin (CRYPTO: BTC) may be headed for the $100,000 mark by the end of this month, according to Mike McGlone, a Bloomberg analyst.

What Happened: McGlone, who previously ascribed a $50,000 plus level for the cryptocurrency, said in a March outlook report that if the Grayscale Bitcoin Trust (OTC:GBTC) closing at its steepest discount ever is an indicator, then it may "signal [Bitcoin's] march to $100,000."

The Greyscale premium, a metric watched closely, ended February with a 2.7% discount. McGlone pointed to March 2017, when BTC backed up to nearly $1,000 on the way to its peak near $20,000 in December of that year.

"Sharp reductions in the GBTC premium have often marked bottoms in Bitcoin," wrote McGlone.

See also: How to Buy Bitcoin (BTC)

"The increasing probability of [exchange-traded] funds in the U.S., on the back of launches in Canada are adding pressure to the trust price, but we see sustaining the upward trajectory as the more likely outcome."

Bitcoin traded 8.48% lower at $47,120.70 at press time. GBTC closed 10.31% lower at $41.40 on Thursday.

Why It Matters: The Grayscale premium is a reference to the difference between the value of the holdings of GBTC versus the market price of its holdings.

McGlone also noted the increased replacement of Gold in portfolios with BTC.

"In 2020, the benchmark crypto gained legitimacy with declining volatility vs. the opposite in most assets. In 2021, we see little to stop the process of old-guard gold allocators simply focusing on prudent diversification," wrote the analyst.

On Thursday, Kraken CEO Jesse Powell said that BTC could replace all of the world's currencies and hit a million-dollar price target within the next ten years.

"The younger demographic is certainly taking notice of it and they see it as a better version of gold," said Powell.

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