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.
Trending Stories
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.”
- Are Hedge Funds Planning USDT Dump? Tether CTO Responds To Rumors
- Here’s Why Apecoin (APE) Price Is Skyrocketing Today
- Crypto Prices Falling Despite “Buy The Dip” Sentiment, Data Reveals Why
- Institutional Traders Dumped Bitcoin At A Record Pace Last Week
- Terra USTC Jumps 300%; Lands Back In Top 100 Cryptos
- Ripple’s EX CTO Dumps 40 million XRP tokens In Last 10 Days
- Dogecoin Soars 35%, Here’s Why Breaking This Level Is Crucial
- Crypto Lender Nexo Denies Fraud, Issues Cease And Desist Notice
- Ethereum (ETH) Price Rise and Stability Pulls Broader Crypto Market to $1 Trillion
- Scoop: This Hedge Fund Is Trying To Bailout BlockFi To Counter FTX
- Tezos Price Analysis: XTZ Rebounds from Yearly Support; is it a good buy?
- Tron Price Analysis: Triangle Pattern Governs the TRX Price Action; Should Coin Holders Worry?
- Dogecoin Price Analysis: DOGE Winning Streak Aims to Reclaim $0.077
- Apecoin Price Analysis: Reversal Pattern Sets 21% Rise in APE Price
- Ethereum Price Analysis: Will ETH Relief Rally Revert From $1300?
- Bitcoin Price Analysis- Higher Price Rejection Hints BTC to Retest $20000
- SHIB Price Analysis: Overhead Supply Pressure Hints SHIB to Retest $0.00001
- Avalanche Price Analysis: Will The AVAX Breakout Rally Reach $30?
- Sandbox Price Analysis: U-shaped Recovery could Lead SAND above $1.5
- NEAR Price Analysis: Reversal Within Channel could Sink NEAR Below $3
