Bloomberg Intelligence senior commodity analyst, Mike McGlone, believes a “warm spell” is coming in terms of bitcoin markets as the market strategist detailed on Monday that “bitcoin appears poised to resume its inclination to outperform.” McGlone’s comments follow his previous prediction that noted bitcoin and ethereum appear to have “completed the bulk of their drawdown.”
Mike McGlone Believes a Crypto ‘Warm Spell’ Is in the Cards, Suggests Bitcoin Will Resume Its Climb in Value When the ‘Fed Pivots to Easing’
Mike McGlone is convinced bitcoin has some healing ahead as he recently tweeted about a “warm spell” on Monday. McGlone’s comment details that “what was resistance for bitcoin vs. Nasdaq 100 stock index at 1:1 may be transitioning to support.” McGlone also shared a chart that he says indicates the “crypto price escaping confinement of the stock index level in 4Q20, on the back of unprecedented fiscal and monetary stimulus.”
Right now, McGlone says what’s been consistent for most of the benchmark crypto’s history is “its declining relative risk vs. the stock index.” “At 2x,” the market strategist continues, “Bitcoin’s annual volatility at the end of 2022 compares with 4x at the end of 2021.” Bloomberg’s senior commodity analyst added:
Next year may be about how much lower global economies fall. Risk vs. reward appears to argue against under-allocating or estimating the propensity for bitcoin to continue its trajectory toward becoming digital collateral.
Bitcoin Crosses, the Crypto Looks to Regain Upper Hand Over Tesla — The near certainty of declining #Bitcoin supply vs. the rising amount of #Tesla shares outstanding favors outperformance by the crypto, if the rules of economics apply. pic.twitter.com/JNQVpOB6za
— Mike McGlone (@mikemcglone11) December 19, 2022
Bitcoin is down more than 75% lower than the crypto asset’s all-time high (ATH) reached on Nov. 10, 2021, at $69,044 per unit. Over the last 14 days, BTC has slid 2.3% lower against the U.S. dollar and since the start of Nov. 2022, following the FTX collapse, BTC has dropped 16.5% against the greenback. Bitcoin’s market capitalization is around $322 billion, which represents 38.2% of the $843 billion crypto economy.
McGlone suggests bitcoin’s warm spell, however, won’t come to fruition until the U.S. Federal Reserve pivots toward monetary easing. “A warm spell ahead,” McGlone added. “Bitcoin Crosses vs. Propensity to Outperform – The world’s benchmark digital asset has taken a beating in 2022 with most others, but bitcoin appears poised to resume its inclination to outperform. When the Fed pivots to easing,” McGlone’s tweet concludes.
What do you think about Bloomberg’s senior commodity analyst Mike McGlone’s opinion about the warm spell ahead? Let us know what you think about this subject in the comments section below.
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