According to Bloomberg Intelligence analysts, Bitcoin (BTC) behaves more like long-term US government bonds and gold in its price development, and could therefore soon be one of the big winners as soon as inflation decreases again.
As the experts of the Wirtschaftszeitung, led by chief commodity analyst Mike McGlone and senior structural analyst Jamie Coutts, write, Bitcoin is more comparable in its current behavior to bonds, gold and oil, the parallels to the stock market are therefore much smaller.
To this end, the analysts note in their new forecast report “Crypto Outlook” that macroeconomic factors such as the restrictive monetary policy of the American Central Bank have had an effect on the Bitcoin exchange rate similar to that on long-term US government bonds:
“Weak markets and declining global economic growth confirm the US Central Bank’s approach to making decisions only from meeting to meeting. This, in turn, could help Bitcoin become more of an investment product like US government bonds, rather than being similar to stocks.“
In this regard, experts believe that the Bitcoin rate will be one of the big profiteers next to government bonds and gold as soon as inflation becomes less in the coming weeks and months.
Is the Flush Done? Booms, Busts and #Bitcoin vs. #Gold, #Bonds, #Oil — Whether the ebbing tide has subsided for most assets is the top binary issue for 2H, and in most scenarios, Bitcoin and Ethereum appear poised to come out ahead. Link to Pdf:https://t.co/iFSCZIULHe
– Mike McGlone (@mikemcglone11) August 3, 2022
Furthermore, the analysts point out that having the market-leading cryptocurrency in July was as cheap as it is rare, because it is “abnormal for Bitcoin to remain below the 200-week moving average for a long time”. At the time of writing, the important brand was already recaptured.
At the same time, the crypto market leader offers great potential, which can be seen from the fact that BTC is 70% behind the record high at the beginning of August, but is still five times higher than the low of March 2020.