The latest Bloomberg Cryptocurrency Outlook report on Bitcoin spoke on a somewhat optimistic note.
Mike McGlone, chief commodity strategist at Bloomberg Intelligence, Think The rest of this year will see bitcoin soar and outperform “most major assets.”
High hopes for the fourth quarter
Speaking in the context of commodities, which is believed to be the only major asset class that has surged in the first half of 2022, McGlone noted that Bitcoin may have bottomed out with commodities peaking.
“As the downward economic tide turns, we see a resumption of the tendency of Bitcoin, Ethereum and the Bloomberg Galaxy Crypto Index to outperform most major assets,” McGlone added.
The strategist further cited the interest rate hikes from central banks around the world and explained that the move would push people towards Bitcoin as a “risk asset,” like gold and US Treasuries.
Higher interest rates combined with a lower global money supply are putting downward pressure on assets such as commodities and technology stocks.
Speaking of historical data, McGlone said that October was the best month for bitcoin since 2014, with an average increase of around 20%.
A Quick Look at BTC/USD Schedule He reveals that October has already been bullish for the benchmark cryptocurrency since 2014, with the majority of candles on the one-month time frame being green.
According to McGlone, Bitcoin is currently showing its lowest ever volatility against the Bloomberg Commodity Index.
The fourth quarter of 2022 could see Bitcoin perform well given the peak commodity prices.
data According to Kaiko Research, according to macro trends, Bitcoin’s correlation with gold is currently at its highest level in a year.
There are several reasons for this connection. The first is the strengthening of the US dollar thanks to the frequent increases in interest rates, which have brought bitcoin and gold closer.
Moreover, in the face of the Russian-Ukrainian conflict, gold has failed to act as a “safe haven” asset that investors rely on to preserve capital in times of economic turmoil.
Due to the high correlation between BTC and gold, the top cryptocurrency is now being seen as an alternative. aAt the time of writing, Bitcoin was trading at $20,093, up 1.08% from October 5th.