A senior Bloomberg analyst says that Bitcoin (BTC) is showing signs of entering a bullish maturation stage despite recent stumbles.
Bloomberg commodity strategist Mike McGlone tells his 53,700 Twitter followers that Bitcoin “may be entering an unstoppable maturation stage” based on it holding to its current price level since June and performing at its lowest volatility.
“It’s little surprise that a relatively new asset that had skyrocketed has declined due to the rapid pace of Federal Reserve tightening in 2022, but Bitcoin is showing signs of bottoming and divergent strength in 4Q. The lowest-ever crypto volatility vs. the Bloomberg Commodity Index may portend better performance for Bitcoin.”
McGlone says that an indicator that Bitcoin may be performing more as a risk-off asset like gold is that its price has remained at the $19,000 price level even with the most recent US Federal Reserve interest rate hike.
“Bitcoin’s ascending leading-indicator status and potential transition toward a risk-off asset like gold and US Treasury long bonds may be playing out in 2H [second half of the year]. Our graphic shows the primary headwind for most risk assets in 2022: aggressive Fed tightening to squash inflation. An indication of divergent strength for the crypto may be that its price of around $19,500 on Oct. 18, with the one-year federal funds future (FF13) signaling rates close to 4.75%, was about the same as it was in June, when FF13 was near 3.5%.”
At time of writing, Bitcoin was trading hands at $19,070.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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