Mike McGlone anticipates a Bitcoin supercycle due to the strong performance of the asset despite the economic circumstances.
Commodity strategist Mike McGlone believes that a Bitcoin (BTC) The supercycle is on the horizon amid the price rally of the leading cryptocurrencies in 2023. According to the senior commodity strategist at Bloomberg Intelligence, BTC’s recent performance compared to gold proves his claim. The prominent digital currency has outperformed gold nearly ten times this year and looks set to continue rising. McGlone also added that Bitcoin is on track for “new highs” if past trends hold, with volatility more likely to pick up compared to commodities.
McGlone first hinted at his sizable Twitter following in his Bitcoin Supercycle predictions. He also identified low and rising cryptocurrency adoption and declining supply as a significant advantage over gold, he said:
“Looking for a super bike? Bitcoin Outperforms Commodities With Declining Risk – Bitcoin outperforms gold, the top-performing old-guard commodity in 2023 as of March 20, by nearly 10-fold may be indicative of a super cycle occurring in crypto “.
McGlone also noted that Bitcoin could be turning from a high-risk asset to a buffer against economic instability. Referencing the ongoing US banking crisis, the senior macro strategist juxtaposed BTC with the KBW Bank Index. McGlone attributed significantly more divergent strength to Bitcoin, saying:
“Relative strength against most assets may herald Bitcoin’s inflection towards global digital collateral and the potential to trade more like gold, US Treasuries. Central banks still tightening despite falling commodities and a banking crisis add to the serious risks of an economic restart.”
The analyst believes that the prevailing economic conditions could further induce the Bitcoin supercycle.
Last week, McGlone also explained why he expected BTC to continue to outperform gold and the stock market. He noted that macroeconomic parameters like Fed hikes, inflation, and the Eastern European war could accelerate Bitcoin’s maturation. McGlone noted that the Fed’s ongoing battle against inflation would further help BTC’s outperformance over gold and traditional stocks.
The Bloomberg commodities strategist also doubts that the global economy will experience the same periods of strong dollar liquidity as in 2022. As a result, investors are more likely to take a more enthusiastic outlook towards Bitcoin. So far, Bitcoin has also outperformed 97% of the companies listed in the S&P 500 Index this year. Only 12 companies managed to offer higher returns than Bitcoin in 2023, with the remaining 488 coming up short. Some of these companies include metaplatforms (NASDAQ:META), tesla (NASDAQ:TSLA), Sales force (NYSE:CRM), nvidia (NASDAQ:NVDA), and Warner Bros (NASDAQ:WBD).
McGlone also recently touched on how the recent collapse of Silicon Valley Bank (SVB) and Signature Bank affected Bitcoin. “Banking troubles may define Bitcoin, cryptocurrency: Bitcoin may be progressing to trade more like long-term US Treasuries and gold as banks come under pressure from collapsing commodity prices. bonuses,” he said.
McGlone also added that a sustained BTC price above $25K clearly indicates divergent strength. Interestingly, several analysts stay optimistic that Bitcoin could eventually break the $100K threshold.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
