Bloomberg’s lead commodity strategist Mike McGlone says that Ethereum (ETH) is gearing up to outperform Bitcoin (BTC).
The closely followed analyst says that despite rough waters for nearly all risk assets, Ethereum’s performance against Bitcoin (ETH/BTC) remains in a strong uptrend on the back of mainstream adoption.
“Bitcoin crosses series; Ethereum may a be top candidate to continue outperforming the firstborn crypto –
Ethereum’s advances vs. Bitcoin have been unshaken by 2022 deflation in most risk assets and may be gaining underpinnings.”
However, McGlone also predicts a “warm spell” for Bitcoin, saying that the leading crypto asset by market cap is on track to outperform the stock market once the Federal Reserve reverses its hawkish stance.
“A Warm Spell Ahead: Bitcoin Crosses vs. Propensity to Outperform – The world’s benchmark digital asset has taken a beating in 2022 with most others, but Bitcoin appears poised to resume its inclination to outperform. When the Fed pivots to easing…”
Looking closer, McGlone says that Bitcoin is also likely ready to outperform Tesla (TSLA). As an innovative tech stock with a similar risk profile and market properties to Bitcoin, TSLA’s performance is often compared to BTC by analysts.
The Bloomberg strategist says that with Bitcoin’s declining inflation rate, BTC looks poised to outshine Tesla as supply and demand factors favor the leading crypto over the more inflationary TSLA stock.
“Bitcoin Crosses, the Crypto Looks to Regain Upper Hand Over Tesla — The near certainty of declining Bitcoin supply vs. the rising amount of Tesla shares outstanding favors outperformance by the crypto, if the rules of economics apply.”
At time of writing, Bitcoin is trading at $16,798.
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