Strategist Questions Bitcoin’s Claims of Outperformance

Bitcoin Bearish

Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, recently discussed Bitcoin’s lofty price targets on David Lin’s show. He explained that Bitcoin reached new highs due to factors like the launch of ETFs and the halving event, which boosted its price.

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However, he pointed out that Bitcoin’s highly volatile and speculative nature is evident, as it has been underperforming compared to traditional assets like gold in the past few months.


Bitcoin and Gold: Intertwined in Long-Term Investment Strategies

Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, believes Bitcoin and gold are increasingly becoming intertwined in long-term investment strategies. This is due to Bitcoin’s diminishing supply and growing adoption. Despite a positive long-term outlook, McGlone expressed concerns about short-term risks, especially if broader market corrections occur. In such scenarios, Bitcoin could potentially lead the downturn as a leading indicator.

“It’s (Bitcoin) had a good run, but it had a good reason to make a new high and has a tremendous reason to be in a severe hangover for a long time. People are reminded now that this volatile, highly speculative digital asset is just that, and it’s way underperforming beta for a couple of months now. And I’m afraid that’s going to continue,” McGlone stated.

When asked about Standard Chartered’s recent price targets of $100k and $150k for Bitcoin, McGlone noted that for these targets to be achieved, beta must continue rising significantly, driven by sustained liquidity injections. He emphasized that Bitcoin’s history is closely tied to financial crises and has benefited from prolonged periods of zero interest rates, which are now coming to an end.

Bitcoin’s Performance and Market Sentiment Under Scrutiny

Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, has called for proof that Bitcoin will outperform other assets and become less risky. He noted that Bitcoin has been performing poorly compared to traditional assets like beta, which continues to reach new highs. Instead of leading the market, Bitcoin now seems to follow market movements upwards.

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McGlone warned that while bear markets often signal buying opportunities, the current bullish sentiments might be overextended. He pointed out that despite Bitcoin’s new all-time highs this year, media coverage and retail interest have been relatively subdued compared to previous cycles, raising questions about market sentiment.


Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

 

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  • SHBAZ

    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

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