Global rate hikes are putting downward pressure on asset prices. But Bitcoin and some altcoins are starting to outperform commodity and technology stocks. Bloomberg commodity analyst Mike McGlone agrees. The analyst says that crypto assets are poised to outperform the rest of the financial markets.
“Bitcoin and Ethereum and these coins will overshadow everything”
Analysts Mike McGlone and Jamie Douglas Coutts shared their views in the latest “Bloomberg Intelligence: Crypto Outlook” report. Accordingly, McGlone says that Bitcoin, Ethereum and altcoins will overshadow everything when the market turns bullish. These coins will make better profits than any other financial market when the market enters its bull cycle. McGlone claims that BTC will dominate tech stocks like Tesla and commodities like gold.
Meanwhile, Bloomberg analysts are giving a hint for the revival of the digital asset markets. To them, the narrative that Bitcoin has become a risk-free asset is gaining strength. This has the potential to revive the cryptocurrency market. Also, analysts are talking about the end of BTC being tightly associated with equity markets. According to them, BTC is evolving from a risk asset to a hedge asset.
“BTC will lead in the second half of 2022”
Mike McGlone added that October has historically been the best month for Bitcoin since 2014. The analyst says BTC averaged 20% gains for the month. He then states that commodities markets appearing at the top could signal that Bitcoin has bottomed out. As we reported on Kriptokoin.com, BTC experienced low volatility throughout September. We also saw a potential peak in commodity prices over the same period.
In this context, McGlone suggested that in the second half of 2022, we could see Bitcoin “starting to become a risk hedge asset like gold.” Kaiko Research data released on October 4 supports the idea that Bitcoin could switch to behaving like “digital gold.” Bitcoin’s correlation with gold has changed with the strengthening of the US dollar and rising interest rates. However, the BTC/gold correlation hit a one-year high. According to McGlone, these factors have the potential to trigger a rally in October.
“Ethereum gained price stability with its transition to PoS”
Bloomberg analysts also share some of their ideas for Ethereum. Analysts underline that the second largest blockchain has entered a new phase with its transition to PoS. Accordingly, ETH could become more stable in macro bear markets than traditional markets like the Nasdaq. McGlone attributes this expectation of stability to the altcoin being trapped between $1,000-2,000. According to him, $1,000 represents support and $2,000 represents resistance and the altcoin will see bigger gains in its bull cycle.
Previous Bitcoin predictions were out
Mike McGlone is known as a Bitcoin master and BTC guru in the crypto market. Because the cryptocurrency analyst has made a number of accurate predictions in the past. Accordingly, McGlone correctly predicted that in 2021 BTC would rise to $6,000, $12,000 and $50,000.
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