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Bloomberg Intelligence senior commodity strategist Mike McGlone has explained that a super cycle could be happening in bitcoin, noting that the cryptocurrency is beating gold by almost 10 times so far this year. added the strategist that if past trends hold, bitcoin’s volatility is more likely to recover compared to commodities as the crypto “leads toward new highs.”
Mike McGlone, a senior commodity strategist for Bloomberg Intelligence (BI), the research arm of Bloomberg, explained on Twitter on Tuesday that a super cycle could happen in bitcoin. He tweeted:
Looking for a super cycle? Bitcoin Outperforms Commodities With Declining Risk – Bitcoin beating gold, the best commodity from the old guard in 2023 to March 20, by almost 10 times could indicate a super cycle happening in the crypto.
The strategist explained that one advantage bitcoin (BTC) has over most commodities is its “new stage of low and rising adoption versus declining supply.”
Referring to 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 to most assets.” However, he pointed out, “What is unique about commodities is the 260-day volatility of bitcoin bottoming out from a new low,” adding:
If past trends hold, the crypto’s volatility is more likely to recover compared to commodities as bitcoin moves towards new highs.
The Bloomberg Intelligence strategist explained last week why he expects BTC to continue to outperform gold and the stock market. “Faced with the Federal Reserve, inflation and war, 2022 could be set for the return of risk assets and mark another milestone in bitcoin’s maturation,” he tweeted on Friday. “Bitcoin is unlikely to stop outperforming gold, with the stock market facing bumps in the road as the Fed attempts another rate hike cycle,” McGlone said.
In another tweet posted Saturday, he commented on how recent failures of major banks, including Silicon Valley Bank and Signature Bank, affected bitcoin. The strategist elaborated:
Bank Troubles Could Define Bitcoin, Crypto Dollar – Bitcoin could evolve to trade more like US Treasuries and gold as banks come under stress on the back of the bond price collapse. Bitcoin sustaining above $25,000 is a clear sign of divergent strength.
Do you think a bitcoin supercycle is happening? Let us know in the comments section below.
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