Taking to Twitter, Mike McGlone, a Senior Macro Strategist at Bloomberg Intelligence, highlighted the firm’s report excerpts. Focusing particularly on the aspect that centres Bitcoin, McGlone shared screenshots of the report, in which the perception of Bitcoin was said to be similar to that of gold but in a digital format.
Bloomberg has branded Bitcoin as “digital gold” in the past, as many traditional institutional firms have looked to the asset as an alternative to traditional gold while also using the apex cryptocurrency to hedge against inflation.
The report noted that the crypto and finance market is likely to record an inflection for Bitcoin following the collapse of many banks in the U.S. and beyond, along with the increased possibility of an economic readjustment.
A Bloomberg technical chart details Bitcoin’s position against the Nasdaq 100, which follows a route similar to the Bitcoin vs most entrenched assets pattern, which is an upsurge in Bitcoin’s rising relative price and a downward movement in the asset’s volatility.
“Bitcoin is viewed more as digital gold in a world going that way and may be moving on from excessive speculation. The 2023 global banking crisis and rising potential for a significant economic reset may mark an inflection for the virtual asset that trades 24/7 and is no one’s project or liability. Our chart of the benchmark crypto vs. the Nasdaq 100 shows a similar Bitcoin pattern vs. the most entrenched assets — rising relative price and declining volatility.”
Unless a change is recorded, Bitcoin’s adoption will soar, and volatility will keep declining
Additionally, the Bloomberg report explained that in the long term, many new patterns might unfold and added that Bitcoin is very well positioned to align with the objective laws of economics and continue to increase in value. Unless there is a change in supply, which is constantly decreasing, against Bitcoin’s adoption, which has continued to grow, Bitcoin is well on its way to the top, Bloomberg remarked.
“It’s a question of duration, and something has to change with decreasing supply vs. increasing adoption as global collateral, or Bitcoin is more likely to follow the rules of economics and appreciate.” The report read.
At report time, Bitcoin and most other cryptocurrencies are in the red zone after nursing mild hourly and daily losses in price value. After hitting a high of $28,800, Bitcoin is now very close to tapping $30,000 for the first time in 2023.
Credit: Source link
