No products in the cart.
- Latest
- Trending
ADVERTISEMENT
Bloomberg Intelligence Senior Commodities Strategist Mike McGlone said Bitcoin’s (BTC) relative discount to October’s high hash rate (the largest since Q1 2020) meant that Bitcoin was “most Trends to outperform assets may return.
On Twitter on October 19th PositionBloomberg analysts say Bitcoin’s hashrate (a measure of a blockchain’s processing power and security) is increasing more and more as it “gives favorable risk/reward” relative to its price range. suggested.
Many believe that, in theory, Bitcoin’s hashrate should increase relative to its price.
McGlone pointed to a graph showing that the 10-day average of Bitcoin’s hashrate in October was “almost on par” with levels that should be around $70,000. However, as of October 18, the price is currently $19,500.
McGlone said the last time such a large gap between price and hashrate was seen was in the first quarter of 2020 swoon, a fall that preceded the meteor rise that lasted from 2020 to 2021. I pointed out that there is.
McGlone suggested that “a similar price base may be forming now.”
A Bloomberg analyst known as Permable said it means Bitcoin could enter an inexorable phase of its transition to the mainstream, at a relatively discounted price, with increasing demand, adoption and regulation. .
separately Position On Linkedin, McGlone said it “may be just a matter of time” before Bitcoin returns to outperforming most major assets, commenting:
With increasing mainstream adoption and adaptive changes in U.S. GAAP driving it, it may be only a matter of time before the trend returns to outperforming most assets.
McGron too Said Given the laws of supply and demand, Bitcoin’s price “should continue to rise over time,” adding that it showed signs of “bottoming out” in the fourth quarter of 2022.
Related: Bitcoin likely to transition to risk-off asset in 2H 2022, according to Bloomberg analysts
It should come as no surprise that the skyrocketing relatively new asset fell due to the Feds rapid tightening in 2022, but Bitcoin showed signs of bottoming out and diverging strength in the fourth quarter. shows,” he explained.
Earlier, Bloomberg analysts suggested that Bitcoin was a “wild card” and a “ripe” one that would outperform when traditional stocks finally bottomed out, suggesting that digital currencies are Bitcoin could reach $100,000 in 2022 once it completes its migration from cryptocurrencies. Risk-on to risk-off assets.
