Bloomberg Intelligence Senior Macro Strategist Mike McGlone suggests that Bitcoin’s remarkable outperformance of gold may indicate the emergence of a new supercycle for the leading cryptocurrency.
As The Daily Hodl has reported, recently, over on Twitter, McGlone emphasized Bitcoin’s advantages over gold, including its low but growing adoption rate and diminishing supply, stating, “Bitcoin beating gold, the top-performing old-guard commodity in 2023 to March 20, by almost 10x may be indicative of a supercycle happening in the crypto.”
Furthermore, McGlone predicts that Bitcoin may transition from a risk-on asset to a more defensive investment against economic instability and banking crises. He compared $BTC to the KBW banking index, which tracks publicly traded leading banks and thrifts in the U.S., highlighting a significant divergence in strength favoring Bitcoin. McGlone explained, “Relative strength vs. most assets may portend Bitcoin’s inflection toward global digital collateral and potential to trade more like gold, U.S. Treasury bonds.”
The strategist also mentioned that he doubts the global economy will experience the same periods of heavy dollar liquidity as it did in the past, possibly prompting investors to focus more on assets like Bitcoin, gold, and bonds. McGlone argued that the lessons of inflation, which occurred due to rapid and excessive “re-liquefication,” would resonate for our lifetimes.
With a potential recession on the horizon, McGlone believes investors will be more inclined to buy into assets such as gold, bonds, and Bitcoin during market dips. He stated, “Those to me are going to be some of the things that people are going to be looking to buy in dips as we tilt in a recession.”
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