- According to commodity strategist Michael McGlone, a Bitcoin supercycle may progress.
According to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, a supercycle in bitcoin may be in progress as the digital currency is currently outperforming gold by a factor of roughly ten. The strategist noted that if past trends hold, bitcoin’s volatility is more likely to rebound commodities when the crypto “goes toward new highs.”
The Bitcoin Supercycle
Mike McGlone, a senior commodity strategist for Bloomberg Intelligence (BI), the research arm of Bloomberg, stated on Twitter on Tuesday that a bitcoin supercycle is possible. He wrote on Twitter:
‘’ Are you looking for a supercycle? Bitcoin outperforms commodities with declining risk: Bitcoin outperforming gold, the top-performing old-guard commodity from 2023 to March 20, by nearly 10x, may be indicative of a crypto super cycle.’’
The expert cited bitcoin’s (BTC) “nascent stage of low and rising adoption vs. dwindling supply” as a positive over most commodities.
McGlone pointed out that the elongated upward trajectory of BTC’s price concerning the Bloomberg Commodity Spot Index is “typically contrasted with most assets” in the above chart captioned “Elongated Bitcoin Upward Trajectory Gathering Fuel.” He added: “What’s distinctively related to commodities is the 260-day volatility of bitcoin bottoming from a fresh low,” pointing out that this was the case:
‘’If past trends continue, cryptocurrency volatility is more likely to recover versus commodities as bitcoin approaches new highs.’’
Last week, the strategist for Bloomberg Intelligence outlined his predictions for BTC’s future performance relative to gold and the stock market. He tweeted on Friday that 2022 “may be ripe for risk-asset reversion and mark another milestone in bitcoin’s development” due to the Federal Reserve, inflation, and conflict.
According to McGlone, “it’s doubtful that bitcoin will cease outperforming gold and the stock market amid hiccups as the Fed attempts another rate-hike cycle.”
He discussed how recent bank failures, such as those of Silicon Valley Bank and Signature Bank, had an impact on bitcoin in another tweet that was published on Saturday. According to the strategist
‘’Bitcoin and crypto dollars may be defined by banking issues. As banks become stressed as a result of the bond-price collapse, Bitcoin may begin to trade more like US Treasury long bonds and gold. Bitcoin holding above $25,000 is a clear indication of divergent strength.’’
source:
https://news.bitcoin.com/bitcoin-supercycle-may-be-happening-says-commodity-strategist-mike-mcglone/
