Bloomberg analyst predicts a “supercycle” for bitcoin
Mike McGlone noted that in 2023, the digital asset is nearly 10 times ahead of gold
23.03.2023 - 11:45
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Bloomberg Intelligence senior commodity strategist Mike McGlone has explained that a supercycle may be happening in bitcoin, noting that the cryptocurrency is beating gold by almost 10 times so far this year. The strategist added that if past trends hold, bitcoin’s volatility is more likely to recover compared to commodities when the crypto “heads toward new highs.”
Bitcoin’s Supercycle
Mike McGlone, a senior commodity strategist for Bloomberg Intelligence (BI), the research arm of Bloomberg, explained on Twitter Tuesday that a supercycle may be happening in bitcoin. He tweeted:
Looking for a super cycle? Bitcoin outperforms commodities with declining risk — Bitcoin beating gold, the top-performing old-guard commodity in 2023 to March 20, by almost 10x may be indicative of a super cycle happening in the crypto.
Chart showing bitcoin’s upward trajectory shared by Mike McGlone. Source: Bloomberg Intelligence
The strategist explained that a benefit bitcoin (BTC) has over most commodities is its “nascent stage of low and rising adoption vs. diminishing supply.”
Referencing the chart titled “Elongated Bitcoin Upward Trajectory Gaining Fuel,” shown above, McGlone noted that the elongated upward trajectory of BTC’s price compared to the Bloomberg Commodity Spot Index is “typical compared with most assets.” However, he pointed out, “What’s unique relative to commodities is the 260-day volatility of bitcoin bottoming from a new low,” adding:
If past trends hold, the crypto’s volatility is more likely to recover vs. commodities when bitcoin heads toward new highs.
The Bloomberg Intelligence strategist explained last week why he expects BTC to continue to outperform gold and the stock market. “Facing the Federal Reserve, inflation, and war, 2022 may be primed for risk-asset reversion and mark another milestone in bitcoin’s maturation,” he tweeted Friday. “It’s unlikely for bitcoin to stop outperforming gold, stock market amid bumps in the road as the Fed attempts another rate-hike cycle,” McGlone opined.
In a different tweet posted Saturday, he commented on how recent failures of major banks, including Silicon Valley Bank and Signature Bank, affected bitcoin. The strategist detailed:
Banking issues may define bitcoin, crypto dollars — Bitcoin may be progressing to trade more like U.S. Treasury long bonds and gold as banks come under stress on the back of the bond-price collapse. Bitcoin sustaining above $25,000 is a clear sign of divergent strength.
This material is taken from the website https://news.bitcoin.com.
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