Bloomberg Analyst: Bitcoin Is A ‘Wild Card’ Set To Outperform – Bitcoin Magazine

Senior commodity analyst for Bloomberg expects bitcoin to bottom around $20,000.The Bloomberg Crypto Outlook Report explains changes in the Fed’s tight monetary policy can result in rising prices for bitcoin.The report cites bitcoin’s dwindling supply as the reason for its likely increase in value over time.

Mike McGlone, a senior commodity strategist at Bloomberg, shared Bloomberg’s Crypto Outlook report on LinkedIn discussing bitcoin’s next bull run as it relates to the broader economy.

“Bitcoin is at a discount within an elongated bull market,” reads the report.

Furthermore, the report explains that it’s only a matter of time before the Federal Reserve has to switch its current monetary policy of quantitative tightening. At which point, bitcoin is poised to be a primary beneficiary due to its under performance in the current market.

In short, once the increase of rates seems to return to normalcy and large amounts of borrowing funds return, large influxes of borrowed cash tends to flow into traditional assets.

McGlone expanded on this thesis in a recent interview on Bell Media, stating:

“Bitcoin and cryptos are going to keep doing what they do best, outperforming most traditional assets with declining volatility.”

To further expand on the declining volatility of bitcoin, the aforementioned report gave a clear and concise explanation for both the declining volatility of bitcoin and the inevitability of its increasing value over time due to simple economics.

“[Bitcoin’s] volatility is declining with increasing adoption and participation,” reads the report. “This is happening as the supply is declining, which by the rules of economics means rising prices over time.”

Thus, McGlone sees a bottom for bitcoin as the Federal Reserve changes direction in future monetary policy, which some reports have suggested will begin to happen early 2023.

“I fully expect bitcoin to bottom out maybe around $20,000 or maybe a bit lower like it did in 2018 and like it did in 2013,” the strategist explained in the interview. 



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