Commodities expert says Bitcoin should continue to ‘outperform gold and the stock market’
Although there have been substantial developments in the cryptocurrency space in recent days, Bitcoin (BTC) is currently enjoying a period of price stability.
Overall, there have been some minor ups and downs, caused by major global developments such as Russia’s invasion of Ukraine, but no discernible long-term pattern has evolved for Bitcoin.
Given the current sentiment towards the Federal Reserve (Fed), inflation and war, Bloomberg senior commodities analyst Mike McGlone believes that 2022 could be a good year for risk asset reversal and represent another milestone in Bitcoin’s maturation.
“Faced with the Federal Reserve, inflation and war, 2022 could be a good time for the reversion of risky assets and mark a new stage in Bitcoin’s maturation. Bitcoin is unlikely to stop outperforming gold and the stock market amid bumps in the road as the Fed attempts another round of rate hikes,” McGlone tweeted the 17th of March.
As of December 31, 2019, Bitcoin outperformed gold, the S&P 500 Total Return Index.
Bitcoin chart analysis
Currently, Bitcoin is trading at $41,005.53, up 1.22% in the past 24 hours and up 4.84% in the previous week, according to statistics from CoinMarketCap.
The total market value of the flagship digital asset currently stands at $778 billion.
Following the European Parliament’s decision not to restrict cryptocurrency mining on March 14, as well as US President Joe Biden’s recent Executive Order last week encouraging innovation and growth in the sector, Bitcoin has become a promising store of value in times of economic crisis. and geopolitical difficulties.
Highlighted by new legislation just signed into law on March 16 by Ukrainian President Volodymyr Zelenskyy that allows the use of cryptocurrency in the country.
The stock market and inflation
Due to rising inflation in the United States and rising energy costs such as oil, many people are looking for a safe haven to invest their money.
Finbold recently reported that Bitcoin’s inflation rate had fallen to 1.7% as of March 10 and is now five times lower than that of the US dollar (USD), positioning the popular cryptocurrency as a potential defense against inflation.
Meanwhile, many analysts are predicting a stock market crash or even an extended bear market in 2022 based on the S&P 500 (-9.15%) and NASDAQ (-15.13%) year-to-date.
McGlone previously pointed out that Bitcoin could move the global digital collateral, given that its losses in 2002 were less than half those of the Nasdaq 100.
“Bitcoin is facing deflationary forces after the excesses of 2021, but the crypto is showing divergent strength. With 2002 losses half that of the Nasdaq 100, Bitcoin could be maturing towards global digital collateral.
Gold is heading lower in the short term
Finally, gold after surging from $2,045 is now back below the $2,000 threshold, trading at $1,948, with analyst Lobo Tiggre recently explaining why gold is heading lower in the short term after breaking the $2,000 mark.
Lobo acknowledged that the conflict in Ukraine is a major factor in the recent increase in the price of gold. However, he thinks the war will be short-lived, which will cause the price of gold to drop.
Warning: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.