- Bitcoin and gold appear to be in a solid consolidating bull market, according to a report by Mike McGlone.
- McGlone is a Bloomberg Intelligence veteran who expects BTC to outperform the altcoin market due in part to the current pandemic.
- The report says that BTC will benefit from the unprecedented levels of quantitative easing from central banks.
According to a recent Bloomberg report, Bitcoin and gold seem to be in a robust consolidating bull market. The report called BTC a “resting bull,” which will benefit from unparalleled levels of quantitative easing from central banks. It also emphasized that BTC is up about 40% in the last year, while there has been a 15% drop in the S&P 500.
Bitcoin and gold appear to be consolidating bull markets that are backing into support zones vs. stocks, less than two months removed from record highs… Bitcoin and gold also stand to be primary beneficiaries of the unprecedented monetary stimulus that’s accompanied by a mean-reverting stock market.
The author of the report, Mike McGlone, believes Bitcoin will outperform Ethereum, XRP and the altcoin market due in part to the current pandemic, stating that “Covid-19 distinguishes Bitcoin from [the] rest of cryptos.”
The macroeconomic effects of the coronavirus accelerate Bitcoin’s process of gaining value relative to other cryptos. Most of the speculative spurt in the Bloomberg Galaxy Crypto Index (BGCI) to start 2020 has dissipated, and on a one-year basis, Bitcoin is up almost 40% to April 2 vs. about a 13% decline in the BGCI…
This year will confirm Bitcoin’s transition from a risk-on speculative asset to the crypto market’s version of gold, in our view.
Bitcoin futures have helped manage the cryptocurrency’s volatility, according to the report. This is a sign that Bitcoin is transitioning from being a speculative investment to a digital alternative to gold.
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