The S&P 500 is the most widely used stock market index to gauge the daily performance of US stocks. It is the performance indicator of 500 of the largest publicly traded companies in the United States. The index covers about 80% of the stock market in the country, with its capitalization. A strategist working at Bloomberg Intelligence recently compared the S&P 500 and bitcoin (BTC). Check out recent statements from Mike McGlone.
Bitcoin (BTC) is advancing towards a bull market
According to a publication on Mike McGlone’s Twitter on October 20, bitcoin could take over the S&P 500. The expert said: “Bitcoin at $19,000 could take over the S&P 500 at $3,600. Bitcoin’s lowest price ever against its 200-week moving average and the fact that the October 18 level is around four times higher than the 1Q20 closing low could signal a lasting bull market after a steep discount“.
McGlone therefore believes that the flagship crypto builds a base of around $19,000. Meanwhile, the stock index is losing value, more and more. The strategist believes that prices will soon stop falling in the crypto market. He clarified that BTC is subject to stock movements, as risky assets often are.
What can support BTC as a store of value?
“A key question towards the end of October is what will stop the falling tide in stock markets, and it’s unlikely to be the Fed.says Mike McGlone. Expert points out that the pace of central bank tightening could be slowed down if deflation in the S&P 500 continues. According to him, it is normal that the deflationary period is prolonged.
After all, we witnessed thelargest pumping and then dumping of US money supply in history“. That said, the continuation of deflation within the S&P 500 “could support bitcoin as a store of value“. Investors could use cryptos to protect their wealth against falling prices for gold and other assets.
Lately, it has been noticed that the stock market and bitcoin (BTC) are moving in opposite directions. For expert Mike McGlone, this divergence is proof that BTC and altcoins could be a store of value.
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