The crypto universe is enriched every day with new virtual currencies. Despite the technological innovations of new projects, bitcoin continues to be the benchmark of cryptocurrencies. In any case, this is the opinion of Mike McGlone, the Bloomberg financial analyst who shared the organization’s Crypto Outlook report. He took the opportunity, on LinkedIn and Twitter, to remind that bitcoin had a specificity that escapes other digital currencies. According to him, the queen of cryptocurrencies has the ability to outperform even when classic stocks are at their lowest.
Bitcoin May Perform Despite Falling Classic Stocks
It’s no secret that the current situation of cryptocurrencies continues to cause concern. The value of bitcoin is far from its standards of a year ago, it is stagnating at less than 21,000 dollars. Despite this, Mike McGlone, the raw materials expert, wants to be reassuring. In the report Bloomberg’s Crypto Outlook which he shared on Twitter and on LinkedIn, he talks about the maturity of the flagship crypto. Indeed, the specialist argues that BTC has the potential to stay on top, even when classic assets are in a bearish phase. He acknowledges that the Fed’s decisions will influence the trajectory of the stock market.
The new monetary policy of the American financial policeman will be a boon for BTC, as it benefits from a currently stable performance in the market. In the report, we can clearly read that the: “bitcoin is discounted in an elongated bull market. » He thinks that the return to normal of loan funds will boost virtual currencies. The analyst admits that: “bitcoin and cryptos will continue to do what they do best, outperforming most traditional assets with declining volatility. »
Bitcoin’s comeback after the bear market?
While waiting to know the date of the end of the rigid policy of the FED, the report of Bloomberg touched on the question of the decreasing volatility of the bitcoin. It says bitcoin will have inevitable growth over time. In addition, its democratization also stabilizes its value: ” Volatility [du bitcoin] decreases with increasing adoption and participation. » This is the consequence of the drop in the supply of bitcoin. This will cause prices to rise according to the law of supply and demand.
With the new monetary policy the FED is adopting, McGlone expects a bitcoin bottom early next year : “I expect bitcoin to bottom out maybe around $20,000 or maybe a bit lower like it did in 2018 and 2013”
Conclusion
While many believe bitcoin is on the decline, McGlone remains optimistic and expects a surge in crypto pride. We will have to wait for the FED’s restrictive measures to expire to see if the Bloomberg analyst was right. He thinks that with bitcoin’s total supply shrinking, there’s a good chance its value will grow over time.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
