“We’re seeing Bitcoin’s bullishness resume” – Here’s why this analyst is bullish

Bloomberg’s latest crypto outlook report talked about Bitcoin in a rather optimistic tone.

Mike McGlone, senior commodity strategist at Bloomberg Intelligence, mean that the rest of this year will see Bitcoin rally and outperform “most major assets”.

High hopes for Q4

Speaking in the context of commodities, which he believes is the only major asset class to rally in the first half of 2022, McGlone suggested that Bitcoin may have bottomed since commodities have peaked.

“As the ebbing economic tide turns, we see the propensity to resume for Bitcoin, Ethereum and the Bloomberg Galaxy Crypto Index to outperform most major assets,” McGlone added.

The strategist further cited interest rate hikes by central banks around the world, explaining that this move would push people towards Bitcoin as a “risk-off asset”, much like gold and US Treasuries.

The interest rate increases together with the falling global money supply are putting downward pressure on assets such as raw materials and technology stocks

Based on historical data, McGlone stated that October has been the best month for Bitcoin since as far back as 2014, with an average increase of around 20%.

A quick look at BTC/USD diagram reveals that the month of October has actually been bullish for the benchmark crypto since 2014, with the majority of candles on the 1-month time frame being green.

According to McGlone, Bitcoin is currently demonstrating its lowest ever volatility against the Bloomberg Commodity Index.

The last quarter of 2022 could give Bitcoin good results given the peak in commodity prices.

The golden connection

Data published by Kaiko research stated that according to macro trends, Bitcoin’s correlation with gold is currently the highest it has been in a year.

There are several reasons for this connection. The first is the strengthening of the US dollar thanks to repeated interest rate hikes, which has only brought BTC and gold closer.

Moreover, in the face of the Russian-Ukrainian conflict, gold has not acted as a “safe haven” that investors rely on to preserve capital in times of economic turmoil.

Given the high correlation between BTC and gold, the top crypto is now seen as an alternative. ONEAt the time of writing, Bitcoin was trading at $20,093, up 1.08% from October 5.