Bloomberg Intelligence senior analyst Mike McGlone believes that a “heat wave” is coming to the bitcoin markets. The market strategist explained on Monday that “bitcoin looks set to resume its outperformance trend“. McGlone’s comments follow his earlier prediction that noted that bitcoin and ethereum appear to have “completed most of their decline.”
Mike McGlone believes that a “heat wave” on crypto-currencies is underway, and suggests that bitcoin will resume its rise in value when the “Fed moves toward easing“.
Mike McGlone is convinced that bitcoin has a long way to go. He recently tweeted about a “heat wave” on Monday. McGlone’s commentary states that “what was resistance for bitcoin relative to the Nasdaq 100 stock index at 1:1 could turn into support“. Mike McGlone also shared a chart that he said indicates that “the price of crypto-currencies is escaping the confines of the stock market index level in 4Q20, thanks to unprecedented fiscal and monetary stimulus.“
Right now, Mike McGlone says that what has been consistent for most of the history of the crypto benchmark is “its relative risk down compared to the stock market index“. “At 2x,” the market strategist continued, “bitcoin’s annual volatility at the end of 2022 compares to 4x at the end of 2021.“The Bloomberg analyst adds:
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. pic.twitter.com/JNQVpOB6za
– Mike McGlone (@mikemcglone11) December 19, 2022
Bitcoin is down more than 75% from the crypto asset’s all-time high (ATH) on November 10, 2021, at $69,044 per unit. Over the past 14 days, BTC has fallen 2.3% and since the beginning of November 2022, following the collapse of FTX, BTC has fallen 16.5%. Bitcoin’s market capitalization is approximately $322 billion, which represents 38.2% of the $843 billion crypto economy.
Mike McGlone suggests that the bitcoin heat wave won’t materialize, however, until the U.S. Federal Reserve pivots to monetary easing. “A hot streak ahead“, McGlone added. “Bitcoin Crossovers vs. Propensity to Outperform – The world’s benchmark digital asset took a beating in 2022 along with most others, but bitcoin looks set to resume its propensity to outperform. When the Fed moves to easing “, McGlone’s tweet concludes.