According to Bloomberg Intelligence’s most recent analysis of the cryptocurrency market, Bitcoin (BTC) may begin to act more like gold and US Treasury bonds than stocks. The research team compared the Bitcoin market to those of gold, bonds, and oil in its August “Crypto Outlook” study, which was written by senior commodities strategist Mike McGlone and senior market structure analyst Jamie Coutts.
“We think more of the same is ahead, particularly as it may be transitioning toward global collateral, with results more aligned with Treasury bonds or gold.”
Additionally, they noted that the “dump-following-pump nature of commodities” and declining bond yields point to a higher likelihood that bonds, gold, and Bitcoin will gain value as inflation declines.
Long-term government debt securities issued by the U.S. Treasury Department are known as Treasury bonds or T-Bonds. They mature over intervals of 20 to 30 years and have a fixed rate of return.
“Tightening markets and plunging global growth support the Federal Reserve’s shift to a ‘meeting by meeting’ bias in July, which may help pivot Bitcoin toward a directional tilt more like US Treasury bonds than stocks.”
As per the research, cryptocurrency markets had their biggest fall to the 100-week moving average in July. “Bitcoin holding considerably below its 200-week moving average is odd,” it continued. BTC has just recaptured the 200-week moving average by moving up to $22,855.20 at the time of writing.
The analysts claimed that the fact that BTC was still five times higher than its low in March 2020 despite being 70% below its peak at the beginning of August “shows its potential.” They highlighted the $20,000 region as a crucial support and stated that they anticipate a foundation to be developing, comparable to the $5,000 level in 2018–19.
The experts came to the conclusion that since its launch around ten years ago, Bitcoin had been one of the best-performing assets.