Bitcoin Outpaces Commodities in 2023, Suggesting BTC ‘Supercycle’ Is On
As the cryptocurrency market continues to demonstrate strength amid the widespread financial crisis that has already brought down several banking giants, Bitcoin (BTC) has surpassed the key price level of $28,000, in turn outperforming commodities in recent months.
In fact, senior commodity strategist at Bloomberg, Mike McGlone, shared his analysis of the flagship decentralized finance (DeFi) asset’s performance in 2023 suggests that Bitcoin has outperformed gold, “the best-performing commodity of the old guard,” by nearly 10 times, as he explained on March 21.
‘Super cycle’ underway?
According to McGlone, such a strong performance of the first cryptocurrency compared to commodities “could be indicative of a super cycle happening in crypto,” made possible by “Bitcoin’s nascent stage of low and rising adoption vs. declining supply.”
As the strategist highlighted, the chart above was “typical compared to most assets,” but what is “unique to commodities is the 260-day volatility of Bitcoin bottoming out from a new low.” According to him, “if past trends hold, crypto’s volatility is more likely to recover compared to commodities as Bitcoin moves towards new highs.”
On top of that, the commodity expert noted that the current crisis in traditional finance could help Bitcoin and stablecoins emerge as a viable alternative thanks to their advantages over banks:
“The banking crisis and problems with fractional reserves can shine a light on the properties of Bitcoin and crypto-dollar fully backed by [Treasury bills (T-bills)].”
Bitcoin price rises
Meanwhile, things are looking good for the largest digital asset by market capitalization, as at press time it was changing hands at a price of $28,148, representing a 1.67% increase on the day, 13.21% over the past week, also as 17, 38% over the last 30 days as charts indicate.
Furthermore, Bitcoin has added over $200 billion to its market cap in 2023 alone, while five leading banks in the United States lost a combined $108.92 billion in the same period, while the “Fear and Greed” crypto index reached a 16-month high, indicating high buying interest, as Finbold reported on March 21.
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