Bloomberg Strategist: Bitcoin Is Showing ‘Divergent Strength’


In a recent with interview, Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence (Bloomberg’s research arm on the Bloomberg Terminal”), shared his latest thoughts on the crypto space.

His comments were made during an interview on March 29 (at a time when Bitcoin was trading around $47,771) with Yahoo Finance’s Akiko Fujita and Brian Chung.

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When Fujita asked about Bitcoin’s latest rally to over $47,000, McGlone replied:

Hello Akiko.. The significance of Bitcoin — it really struck me the last few weeks — is it is the most significant, fluent, widely- traded 24/7 asset ever on the planet. And when we saw nickel break down and couldn’t trade for a couple of weeks, people looked over to Bitcoin to say ‘man, this thing it just doesn’t stop trading’.

So, I think what’s happening is in the macro… Bitcoin supplies declining by code and it’s demand adoption is rising. And you’re really seeing from the war [that] its value [is] coming out as the store of value exchange mechanism, in some place becoming global collateral.

So to me, that’s the macro big picture, and that was pulled out initially with that lower tide from the stock market. It’s still going to be a pressure factor, but I end with this: the significance is Bitcoin is up on the year, what five percent are so, and the Nasdaq is still down about 7%, so showing divergent strength, which I expect to continue.

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And with regard to Bitcoin vs Ethereum, McGlone told Chung:

I think a key way to look at Bitcoin versus Ethereum and the 18,000 other cryptos is Ethereum has a major solid use case… but it’s ebbing tied a little bit. Remember, it was up 5x… but you can’t get 5x returns without some back and fill. So, it’s got more to give as the Fed tightens and focuses on inflation, but I think it’s going to come out ahead.

The bottom line is we’re seeing a dichotomy between Bitcoin becoming digital version of gold… and a lot of other cryptocurrencies, like Doge and Shiba Inu, which are just speculative excessive, they’re probably going to go away, but Ethereum’s in a really good space; it’s just consolidating some of the gains from last year.

Now, I leave you with this.. NFTs are almost always denominated in Ethereum, and then I look at crypto dollars. People call them stablecoins. Virtually all of them have been made by ethereum… which shows the value of Ethereum.

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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