Bitcoin is on its way to becoming global collateral Bloomberg’s analyst Mike McGlone has often maintained. He has reiterated that Bitcoin’s sustained buoyancy in the face of all the market-moving events happening points to Bitcoin’s unstoppable rise.
Bitcoin’s divergent strength in play vs Nasdaq 100
In Bloomberg Intelligence’s latest analysis, McGlone and Jamie Douglas Coutts, Bloomberg’s senior market structure analyst, have examined just how Bitcoin is fairing in its journey to ultimate dominance.
One sign of Bitcoin’s growing acceptance is its outperformance of the equities market. The analysts noted that so far in 2022, the crypto market was showing more stability than the Nasdaq 100, the popular stock market index.
Bitcoin, despite its characteristic volatility, seems to be on its way to breaching key resistance at its 50-week moving average, the analysts observed. If the price of Bitcoin sustains above $46,300 for the year while the Nasdaq 100 stays down by 8%, it could mark an inflection point for the pioneer crypto. This would also result in equities being more likely to trade lower and Bitcoin’s buoyancy outlasting it.
Bitcoin’s dominance and divergence from risk assets will be inadvertently helped by rising inflation and the Fed’s attempt to reign it in.
Every day that the Federal Reserve wakes up to rising asset prices, our take is it becomes more concerned about related inflation and inclined to do something about it. Bitcoin is poised to come out ahead of what may be an overdue mean reversion for risk assets, the analysts said.
Bitcoin also wins vs commodities
In the opinion of the analysts, Bitcoin has advantages and hence is also poised to outperform commodities as well. One of the advantages Bitcoin holds over the asset class is its undisruptable trading. McGlone has previously highlighted this when he called Bitcoin “the most significant, fluent, widely- traded 24/7 asset ever on the planet.”
Bitcoin has never suffered the kind of drama commodities have like the recent case of the suspension of the trading of Nickel by the London Metal Exchange (LME) and the probe that has followed the exchange.
McGlone and his colleague said: “Constant price discovery without distortions, limits or central-party control are attributes of blockchain-based assets like Bitcoin, and the money is migrating to where it’s treated best.”
- Why Billionaire Ray Dalio Is Still Betting Big On Bitcoin (BTC)?
- CZ Fuels Rumors Of Binance’s Trading Service Launch In Dubai
- Just-In: European Central Bank Says Crypto Unsuitable As Store Of Value
- Shiba Inu The Most-Held Token By ETH Whales, Is Metaverse Hype Back?
- South Korean Terra Holders Skyrocketed After Its Crash, Here’s Why
- Verse Metaverse – LA Villa Hand Over On May 30
- Bitcoin (BTC) Faces A Crash To 2020 Lows, Here’s Why
- On-Chain Data: Bitcoin (BTC) Always Pegs Higher Trust Over Ether (ETH) in Bear Market
- Is Terra’s Singapore Office A “Paper Company?”
- Bitcoin (BTC) Options Market Hints Major Downside Risks Over Next 3-6 Months
- TRON Price Analysis: High Volume Breakout may Lead TRX to $0.9 Mark
- Tezos Price Analysis: Dynamic Trendline May Carry XTZ Price to $2.4
- AAVE Price Analysis: AAVE Chart Hints Coin Holders May Lose $100 Mark
- What Next For The Fast Recovering FTM Price?
- Ethereum Price Analysis: Triangle Pattern Foretells Upcoming Rally in ETH
- Zilliqa Price Analysis: Channel Breakout Hints ZIL Price to hit $0.1
- Bitcoin Price Analysis: Trapped Bullish Momentum Need Triangle Breakout
- FTM Price Analysis: Buyers Tease Breakout From Long-Coming Trendline
- GALA Price Analysis: High Momentum Fallout Warns $0.075 Fallout
- Solana Price Prediction 2022: Bulls to drive SOL Price to new Highs?