Bloomberg Analyst: Bitcoin Will Outperform As A 'Wild Card' – Bitcoin Magazine

Mike McGlone, a senior commodity analyst at Bloomberg, posted a link to the company's Crypto Outlook research on LinkedIn.

The report discusses bitcoin's potential for its next bull run in relation to the economy as a whole.

According to the report, Bitcoin is currently trading at a discount within an extended bull market.

In addition, the research adds that it is only a matter of time before the Federal Reserve is forced to transition from its current monetary strategy of quantitative tightening to another policy in the near future. Because of its poor showing in the present market, bitcoin is well positioned to be one of the key beneficiaries whenever this point arrives.

In a nutshell, when the rise in interest rates appears to return to normal and huge amounts of borrowing funds return, large influxes of borrowed cash have a tendency to flow into traditional assets. This occurs because traditional assets tend to have a higher expected return on investment.

In a recent interview with Bell Media, McGlone provided further support for this notion by stating:

Bitcoin and other cryptocurrencies are going to continue doing what they do best, which is outperforming the majority of traditional assets while also exhibiting decreasing volatility.

The report that was referenced earlier offered an explanation that was both clear and succinct for the decreasing volatility of bitcoin as well as the unavoidable rise in value that bitcoin will experience over the course of time due to the application of basic economic principles. This will be discussed further in the following paragraphs.[rb_related title="More Read" style="light" total="4"]

According to the paper, "[Bitcoin's] volatility is decreasing with greater use and engagement." [Citation needed] This is occurring at the same time as supply is falling, which, according to the rules of economics, should lead to an increase in prices over time.

Therefore, McGlone anticipates a bottom for bitcoin as the Federal Reserve begins to change the way in which it will conduct future monetary policy, which, according to some reports, will begin to happen as early as 2023.

The market strategist stated during the interview, "I fully expect bitcoin to bottom out somewhere around $20,000 or maybe a bit lower like it did in 2018 and like it did in 2013


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Gracy 44 w

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Ayodele Samuel 45 w

Woe