Bloomberg Analyst Says Bitcoin May Start New Super Cycle As BTC Outperforms Gold
Bloomberg senior macro strategist Mike McGlone says Bitcoin (BTC) outperforming gold by a lot could be indicative of another super cycle for the cryptocurrency king.
McGlone tells his 55,000 Twitter followers that one of Bitcoin’s key benefits over gold is its low and rising usage plus dwindling supply.
“Looking for a Super Cycle? Bitcoin Outperforms Commodities with Diminishing Risk – Bitcoin Beats Gold, the Best Old Guard Commodity in 2023 to March 20, by Almost 10x Could Be an Indication of a Super Cycle Happening in the Crypto.”
The strategist also predicts that Bitcoin may be in a transition period between being a risky asset and a more defensive investment against economic instability and banking crises. He pits BTC against the KBW Bank Index, which tracks the leading banks and thrifts listed in the US, pointing out major divergent strength in favor of Bitcoin.
“Relative strength vs. most assets could herald Bitcoin’s tilt toward global digital security and potential to trade more like gold, US Treasuries. Central banks still tightening despite falling commodities and a banking crisis add to serious financial reset risk.”
McGlone said earlier this week that he doubts the global economy will go through the same periods of heavy dollar liquidity that it went through in the past, which could force investors to take a sharper stance on Bitcoin, gold and bonds.
“We’re not going to have the re-liquidation that we had in the past because of the lessons of inflation that will reverberate through our lives when they ‘re-liquidate’ too quickly, too much. So to me, that’s where the world is going now. And that’s why this is a different environment for things that depended on that, US stocks, it’s over.
And there is the recession. So we have to get through this recession. If we don’t get it done. It’s a shock. Just two weeks ago, the probability was the highest ever from the yield curve. You can’t say it’s turned down. So we need to get through this recession to think of everything as risk assets like equity. But look what gold and bonds and Bitcoin are doing. Those to me are going to be some of the things that people are going to be looking to buy in the fall when we tip into a recession.”
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