Mike McGlone, the head commodity strategist at Bloomberg Intelligence, recently tweeted that he believes Bitcoin will once again be viewed as a store of value and will increase faster than the S&P 500 index. McGlone stated that Bitcoin, currently trading at $19,000, may “gain upper hand” over the S&P 500, which is currently at 3,600.
According to a screenshot from a recent Bloomberg report included with the tweet, the S&P 500 has fallen by about 20% this month.
The analysis notes that Bitcoin is forming a base around the $19,000 price range even while traditional markets are following S&P on the downward trend.
A further decline in the price of the S&P 500 may prevent the Fed Reserve from tightening its policy going forward, claims the study. In light of this, the most significant “pump-and-dump” in the US money supply may demonstrate Bitcoin’s usefulness as a store of value.
In addition, McGlone reminded the community in a previous tweet today that Bitcoin’s limited and declining supply is a crucial component for its price to continue to rise over time.” The demand and adoption trends for BTC could be affected by some unforeseen event. However McGlone deemed this to be “unlikely.”
Additionally, Mike McGlone noted in his Bloomberg Crypto Outlook article from October 5 that while rising interest rates globally are driving down the value of most assets, Bitcoin is outperforming commodities and high-tech firms like Tesla.
He noted in the research that Bitcoin had its lowest volatility ever when measured against the Bloomberg Commodity Index, which tracks movements in pricing commodities like gold and crude oil. He says that traditionally when a cryptocurrency is on its way to new highs, Bitcoin volatility has a higher chance of recovering than commodity volatility.
He added that October has turned into the best month for Bitcoin (BTC), with gains of almost 20% on average for the month, and that the peaking of commodities may be a sign that Bitcoin has reached its bottom.