- Mike McGlone shared his thoughts that represent his optimistic view on Bitcoin.
- He said that the relative discount to hash rate of Bitcoin is the highest since the starting of 2020.
Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence recently shared some posts on his official Twitter account on October 19, 2022 that were quite optimistic on Bitcoin.
Bitcoin Enters in An Unstoppable Maturation Stage
In the first tweet of McGlone yesterday about Bitcoin pointed towards the entry of Bitcoin in the unstoppable maturation stage. Along with an image he added that “Bitcoin is showing signs of bottoming and divergent strength in its fourth quarter. The lowest-ever crypto volatility vs the Bloomberg Commodity Index may forecast better performance for the most-traded cryptocurrency, bitcoin.”
With a data chart sourced from Bloomberg Intelligence, McGlone firstly added “Is Bitcoin buckling FED hikes, or a leading Indicator?” In which he explained that “the ascending leading-indicator status and potential transition of Bitcoin is toward a risk-off asset like gold. Whereas, the U.S. Treasury long bonds may be playing out in 2H.”
By referring to the graphic, McGlone indicates “the primary headwind for most risk assets in 2022: aggressive FED tightening to squash inflation. That showed an indication of divergent strength for the crypto may be that its price of around $19,500 on Oct. 18, with the one-year federal funds (FF13) signaling rates close to 4.75%, was about the same as it was in June 2022, when FF13 was near 3.5%.”
Along with the fact, McGlone mentioned as “the benchmark crypto has not dropped along with the latest round of rate-hike expectations may also signal a FED end game on the horizon.”
McGlone secondly added about the Bitcoin price action in the coming time. He added as “Supply is Straightforward, Declining Bitcoin’s definable diminishing supply is unprecedented on a global scale, and so prices should continue to rise over time unless something unlikely reverses demand and adoption trends, given the laws of supply and demand.”
In addition, he added that “the increasing dichotomy between declining Bitcoin supply vs. rising North American crude-oil and liquid-fuel production relative to consumption is striking, with implications for their prices. The hike in the crude-oil price expects a reversal in the trend depicted in the graph that shows U.S. and Canada fuel consumption dropping to about 15% below output next year.”
He also noted that “trend is our friend” rules point positively for the price of bitcoin and negative for crude oil.
- Record High Hash-Rate for Bitcoin
McGlone lastly added about the Rising Demand, Adoption, Regulation over Bitcoin. He further said over Bitcoin’s upward hash rate that “Bitcoin’s network computing power from CoinMetrics reached a new high in October, roughly equivalent to the crypto price around $70,000 on an autoscale basis since 2015.”
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/10/20/a-senior-commodity-strategist-is-optimistic-about-bitcoin/