Bitcoin Supercycle May Be Happening, Says Commodity Strategist Mike McGlone
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 addedthat 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. Tags in this story BI, bitcoin beating gold, bitcoin super cycle, bitcoin supercycle, bitcoin vs commodities, Bitcoin vs gold, Bloomberg Intelligence, BTC beating gold, BTC super cycle, BTC vs gold, commodity strategist, crypto super cycle, Mike McGlone, Mike McGlone bitcoin super cycle
Do you think a supercycle is happening in bitcoin? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. ARB Token Airdrop: Anticipation Spurs IOU Markets for Arbitrum’s Native Cryptocurrency Asset MARKETS AND PRICES | 5 hours ago Mad Money Jim Cramer on BTC Price Surge: "I Would Sell My Bitcoin Right Into This Rally" MARKETS AND PRICES | Mar 14, 2023
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSEC Informs Crypto Exchange Coinbase of Potential Securities Law Violations Next articleTexas Lawmaker Launches Resolution to Protect Bitcoin Investors, Support BTC Economy Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin