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Latest Crypto Outlook from Bloomberg Intelligence report Bitcoin (BTC) may start to perform more like Treasuries than stocks as it slowly recovers from the recent market crash, he said.
Falling bond yields make it very likely that Bitcoin will rise in line with gold and bonds once deflation sets in, according to the report.
The Federal Reserve’s monetary policy amid this slowing global growth and tight markets “could help reorient bitcoin more like a US Treasury bond than a stock.” there is.”
The report added that Bitcoin has been one of the best performing assets since its launch.
The report also acknowledges that Bitcoin could become a store of value. Assets are already becoming the primary risk indicator and may shift to stores of value over time, he noted.
Bitcoins potential to become digital collateral in a world that is going that way is exemplified over the weekend.
What’s more, analysts believe Bitcoin will likely recover faster than commodities when the market finally rebounds.
Additionally, the report identified an imbalance between equities and cryptocurrencies and what this means for future performance.
The Bloomberg Galaxy Crypto Index (BGCI) has corrected 70% this year, but says it still outperforms the Nasdaq 100 by about 2.5x.
The growth of crypto dollars (stablecoins) is a major sign of crypto usage. During August 2018, when BCGI was launched, the value of stablecoins on CoinMarketCap increased from $300 million to $150 billion.
The shift in the value of most cryptocurrencies to the dollar is a sign of endurance, as are financial market futures a strong option for mitigating risk.
The losses recorded in the 2022 crypto bear market are nothing compared to the nearly $25 trillion lost from tech stocks around the world. The report said the decline reflected “the early days of the Internet and its evolution from 2000 to his 2002.”
Bloomberg Intelligence wrote that Ethereum (ETH) could become a global institutional-grade asset as the asset transitions to a Proof-of-Stake network.
The report says the asset’s price may be mis-priced as key indicators such as active users, non-zero balance addresses and transactions have outperformed the last bear market.
Ethereums success is based on its usefulness to engage in economic and social activities. Stablecoins, DeFi and NFTs are the first smart contract use cases (primitives) to drive demand for blockspace. appeared as.”
