Bloomberg Intelligence senior commodity strategist Mike McGlone thinks Bitcoin (BTC) is trading for less than it should be.
McGlone says in a new report that he views Bitcoin as akin to internet stocks in 2001-2002.
“Our graphic shows Bitcoin consolidating at the steepest-ever discount to its 100-week moving average. What’s notable is that the benchmark crypto last built a similar foundation in 2018-19 at about $5,000, and in 2015 closer to $300. That the price is about $20,000 on Sept. 2 supports our base case: Bitcoin is at a discount within an elongated bull market.”
McGlone says it’s possible that the world enters a deflationary recession this year. He argues that “history may consider” 2022 to be the year Bitcoin joined gold and US Treasury bonds as an international store of value.
“The benchmark crypto has been one of the best-performing assets since its inception about a decade ago, and we think more of the same is ahead, particularly as it may be transitioning toward global digital collateral, with results more aligned with Treasury bonds or gold.”
Bitcoin is trading at $18,902 at time of writing. The top-ranked crypto asset by market cap is down more than 4.4% in the past 24 hours and more than 6.2% in the past seven days. It also remains down more than 72% from its all-time high of around $69,000, which it hit last November.
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