Bitcoin Supercycle May Be Happening, Says Commodity Strategist Mike McGlone

Bloomberg Intelligence elder commodity strategist Mike McGlone has explained that a supercycle whitethorn beryllium happening successful bitcoin, noting that the cryptocurrency is beating golden by astir 10 times truthful acold this year. The strategist added that if past trends hold, bitcoin’s volatility is much apt to retrieve compared to commodities erstwhile the crypto “heads toward caller highs.”

Bitcoin’s Supercycle

Mike McGlone, a elder commodity strategist for Bloomberg Intelligence (BI), the probe limb of Bloomberg, explained connected Twitter Tuesday that a supercycle whitethorn beryllium happening successful bitcoin. He tweeted:

Looking for a ace cycle? Bitcoin outperforms commodities with declining hazard — Bitcoin beating gold, the top-performing old-guard commodity successful 2023 to March 20, by astir 10x whitethorn beryllium indicative of a ace rhythm happening successful the crypto.

Chart showing bitcoin’s upward trajectory shared by Mike McGlone. Source: Bloomberg Intelligence

The strategist explained that a payment bitcoin (BTC) has implicit astir commodities is its “nascent signifier of debased and rising adoption vs. diminishing supply.”

Referencing the illustration titled “Elongated Bitcoin Upward Trajectory Gaining Fuel,” shown above, McGlone noted that the elongated upward trajectory of BTC’s terms compared to the Bloomberg Commodity Spot Index is “typical compared with astir assets.” However, helium pointed out, “What’s unsocial comparative to commodities is the 260-day volatility of bitcoin bottoming from a caller low,” adding:

If past trends hold, the crypto’s volatility is much apt to retrieve vs. commodities erstwhile bitcoin heads toward caller highs.

The Bloomberg Intelligence strategist explained past week wherefore helium expects BTC to proceed to outperform golden and the banal market. “Facing the Federal Reserve, inflation, and war, 2022 whitethorn beryllium primed for risk-asset reversion and people different milestone successful bitcoin’s maturation,” helium tweeted Friday. “It’s improbable for bitcoin to halt outperforming gold, banal marketplace amid bumps successful the roadworthy arsenic the Fed attempts different rate-hike cycle,” McGlone opined.

In a antithetic tweet posted Saturday, helium commented connected however caller failures of large banks, including Silicon Valley Bank and Signature Bank, affected bitcoin. The strategist detailed:

Banking issues whitethorn specify bitcoin, crypto dollars — Bitcoin whitethorn beryllium progressing to commercialized much similar U.S. Treasury agelong bonds and golden arsenic banks travel nether accent connected the backmost of the bond-price collapse. Bitcoin sustaining supra $25,000 is simply a wide motion of divergent strength.

Do you deliberation a supercycle is happening successful bitcoin? Let america cognize successful the comments conception below.

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