Bloomberg Intelligence senior commodity strategist Mike McGlone has explained that a supercycle may be underway in bitcoin, noting that the cryptocurrency is outperforming gold nearly 10 times so far this year. The strategist added that if past trends hold, bitcoin’s volatility is more likely to pick up compared to commodities when the crypto “heads for new highs.”
Bitcoin Supercycle
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence (BI), Bloomberg’s research arm, explained on Twitter Tuesday that a bitcoin supercycle could be underway. He tweeted:
Looking for a super cycle? Bitcoin Outperforms Commodities With Declining Risk: Bitcoin outperforming gold, the top-performing old-guard commodity in 2023 as of March 20, by almost 10x may be indicative of a super cycle occurring in crypto .
The strategist explained that a bitcoin profit (BTC) has over most commodities is their “incipient stage of low and rising adoption vs. declining supply.”
Referencing the graph titled “Bitcoin Elongated Upward Trajectory Gaining Fuel,” shown above, McGlone noted that the elongated upward trajectory of BTCBloomberg’s price compared to the Bloomberg Commodity Spot Index is “typical compared to most assets.” However, he noted: “What is unique relative to commodities is bitcoin’s 260-day volatility bottoming out from a new low,” adding:
If past trends hold, cryptocurrency volatility is more likely to pick up against commodities as bitcoin heads for new highs.
The Bloomberg Intelligence strategist explained last week why he expects BTC to continue to outperform gold and the stock market. “In the face of the Fed, inflation and war, 2022 may be poised for risk asset reversal and mark another milestone in bitcoin maturation,” he tweeted on Friday. “Bitcoin is unlikely to stop outperforming gold, stock market hits bumps in road as Fed attempts another rate hike cycle,” McGlone opined.
In a different tweet posted on Saturday, he commented on how the recent bankruptcies of major banks, including Silicon Valley Bank and Signature Bank, affected bitcoin. The strategist detailed:
Banking troubles may define bitcoin, crypto: Bitcoin may be progressing to trade more like long-term US Treasuries and gold as banks come under pressure due to collapsing bond prices. Bitcoin holding above $25,000 is a clear sign of divergent strength.
Do you think a supercycle is happening in bitcoin? Let us know in the comments section.
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