Bitcoin Supercycle: Could BTC Beat Gold by 10x This Year?
• Bloomberg Intelligence senior commodity strategist Mike McGlone believes a supercycle may be occurring in bitcoin.
• The cryptocurrency has outperformed gold by almost 10 times this year, and its volatility is more likely to recover than commodities when it reaches new highs.
• McGlone also expects BTC to continue outperforming gold and the stock market due to diminishing supply, Federal Reserve inflation, and war.
Bitcoin Supercycle May Be Happening
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 added that if past trends hold, bitcoin’s volatility is more likely to recover compared to commodities when the crypto „heads toward new highs.“
Benefit of Bitcoin
The 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.
Outperforming Gold & Stock Market
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.
Banking Issues Defining Bitcoin
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 susta
As banking issues become increasingly prominent due rising inflation rates caused by Federal Reserve policies amidst war related tensions – it appears as though Bitcoin could become an attractive asset for investors looking for alternative stores of value outside traditional financial instruments such as stocks or bonds . With BTC already outpacing other assets such as Gold by tenfold this year – Mike McGlone’s sentiment seems valid – we could indeed be witnessing a “Super Cycle” in action within Crypto markets today!