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Bloomberg Intelligence Senior Commodities Analyst Mike McGlone believes a “heat wave” is coming to bitcoin markets as the market strategist detailed on Monday that “bitcoin looks set to resume its trend to outperform”. McGlone’s comments follow his earlier prediction that bitcoin and ethereum appear to have “finished most of their pullback.”
Mike McGlone Believes Crypto ‘Hot Spell’ Is in the Cards, Suggests Bitcoin Will Resume Rise in Value When ‘Fed Pivots to Easing’
Mike McGlone is convinced that bitcoin has some healing ahead, as he recently tweeted about a “heat wave” on Monday. McGlone’s comment details that “what was bitcoin’s resistance against the Nasdaq 100 stock index at 1:1 may be moving into support.” McGlone also shared a chart which he says indicates that “crypto price is breaking out of the stock index level containment in 4Q20, thanks to unprecedented fiscal and monetary stimulus.”
Graph shared by Mike McGlone on Monday, December 19, 2022.
Right now, McGlone says what has been constant for most of the benchmark crypto’s history is “its declining relative risk versus the stock index.” “At 2x,” the market strategist continues, “Bitcoin’s annual volatility at the end of 2022 compares to 4x at the end of 2021.” Bloomberg’s senior commodities analyst added:
Next year we may see how much the world economies will fall. Risk versus reward seems to argue against under-allocating or estimating bitcoin’s propensity to continue its trajectory to become digital collateral.
Bitcoin Crosses, Crypto Seeks To Regain The Edge Of Tesla – Virtual Certainty Of Falling #Bitcoin Supply Against Growing Amount Of #Tesla Shares In Circulation Helps Crypto Outperform, If Economic Rules apply. pic.twitter.com/JNQVpOB6za
— Mike McGlone (@mikemcglone11) December 19, 2022
Bitcoin is down more than 75% from the all-time high (ATH) of the crypto asset reached on November 10, 2021, at $69,044 per unit. Over the past 14 days, BTC has fallen by 2.3% against the US dollar and since the beginning of November 2022, following the collapse of FTX, BTC has fallen by 16.5% against the note green. Bitcoin’s market capitalization is approximately $322 billion, which represents 38.2% of the $843 billion crypto economy.
McGlone suggests that bitcoin’s heat wave will not materialize until the US Federal Reserve turns to monetary easing. “A hot spell ahead,” McGlone added. “Bitcoin Crosses vs. Propensity to Outperform – The global benchmark digital asset took a hit in 2022 along with most others, but bitcoin looks set to resume its outperform trend. When the Fed swings to easing concludes McGlone’s tweet.
Tags in this story Bearish, Bitcoin, Bitcoin (BTC), Bloomberg Analyst, Bloomberg Intelligence, Bloomberg Intelligence bitcoin, BTC, Bull Market, Bullish, Charts, commodity strategist, Cryptocurrency, Economy, Finance, market, Markets , Mike McGlone, Mike McGlone bitcoin, Mike McGlone btc, Mike McGlone crypto, Mike McGlone cryptocurrency, Nasdaq 100, Price, resistance, strategist, Warm Spell
What do you think of Bloomberg’s senior commodities analyst Mike McGlone’s opinion on the upcoming heat wave? Let us know what you think about this topic in the comments section below.
Jamie Redman
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