Bloomberg senior analyst Mike McGlone said that bitcoin (BTC) shows signs of being at the beginning of a new bullish “supercycle”, after widely surpassing gold.
Through his Twitter account, McGlone highlighted that BTC outperformed the precious metal by “almost 10 times” as the top-performing asset so far in 2023.
He added that this “may be indicative that the cryptocurrency is starting a supercycle” bullish.
Looking for a super cycle? Bitcoin Outperforms #Commodities With Declining Risk – #Bitcoin beating #gold, the top-performing old-guard commodity in 2023 to March 20, by almost 10x may be indicative of a super cycle happening in the #crypto. pic.twitter.com/DGdAL3PW3C
— Mike McGlone (@mikemcglone11) March 21, 2023
In addition, McGlone reminded that one of bitcoin’s advantages over gold is its low and growing adoption, as well as its dwindling supply.
The strategist also predicted that BTC may be in a transition period between being a risk asset and a more defensive investment against economic instability and banking crises.
Relative strength vs most assets may portend #Bitcoin's inflection toward global digital collateral and potential to trade more like #gold, US Treasury #bonds. Central banks still tightening despite plunging #commodities and a #BankingCrisis adds to severe economic-reset risks pic.twitter.com/OhZOnbbbNw
— Mike McGlone (@mikemcglone11) March 21, 2023
In that regard, the Bloomberg analyst compared bitcoin to the KBW banking index, which tracks major banks and thrifts listed on U.S. stock exchanges, and highlighted a large divergent strength in favor of the flagship cryptocurrency.
This relative strength versus most assets foreshadows BTC’s inflection into global digital collateral and the potential to trade more like gold and U.S. Treasuries, he mentioned.
“Central banks are still adjusting despite the commodity slump and a banking crisis adds to the serious economic reset risks,” McGlone said.
Late last week, the expert augured during a YouTube interview that the global economy will not go through the same periods of strong dollar liquidity it went through in the past, so investors may take a more enthusiastic stance on bitcoin, gold and bonds.
“To me, those are going to be some of the things that people will be looking to buy on the dips as we tilt toward a recession.”
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