Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, recently suggested that Bitcoin might be in its “unstoppable maturation” stage as a new technology.
The strategist described Bitcoin as a potential leading market indicator that could signal an end to Federal Reserve rate increases.
Bitcoin as Global Collateral
McGlone posted on LinkedIn that crude oil prices have risen to $84 per barrel. This “may indicate the appreciation benefit of the nascent tech.”
He stated that the benchmark crypto was becoming a valuable asset in a digital world. It’s also a global collateral that isn’t subject to any liability or responsibility.
Bill Miller and Michael Saylor, two prominent Bitcoin bulls, often refer to Bitcoin as “digital gold”. It is not only extremely rare, but it also has no liability relationship with any company or country-state.
Bitcoin, however, has been performing more like a high volatility tech stock than a safe-haven asset for the past few months. It is currently down 70% compared to its peak in November.
McGlone said that it makes sense for Bitcoin to contract in a historically hawkish environment, especially since it has been one of the most successful assets over the past decade.
He said that it was possible to return to the asset’s propensity to outperform all assets in time as mainstream adoption advances and adaptive changes to US accounting standards give it an edge.
The Financial Accounting Services Board (FASB), last week, agreed to adopt a fair-value accounting standard for digital assets. This will increase the appeal of Bitcoin for institutions to keep on their balance sheets, according to many investors.
Is Bitcoin a Leading Indicator?
Bloomberg Intelligence shared a report that said Bitcoin was “ascending” and is a leading indicator of an end to Fed’s inflation battle. While other risk assets fell due to rising interest rates during Q3, Bitcoin was mostly stable.
It stated that Bitcoin could be a top catalyst for central banks to curb tightening.
The United Nations urged the Federal Reserve to stop increasing rates earlier in the month, fearing that they would create a global sovereign default crisis.
CryptoPotato’s first post, Bitcoin Entering an “Unstoppable Stage”: Bloomberg Intelligence, appeared first on CryptoPotato.
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