During 2020-21, Bitcoin has seen tremendous gains. But since mid-2022, the world’s largest cryptocurrency by market capitalization, Bitcoin is hopping between $46,000 and $45,000.
In the early hours today, Bitcoin did reach $47,000 but bulls couldn’t hold that level for too long and hence retraced.
Bitcoin To Be A Global Collateral
Mike McGlone, an analyst at Bloomberg is of the opinion that Bitcoin is on its way to becoming global collateral. Also, McGlone and Bloomberg another senior market structure analyst, have examined Bitcoin’s journey and say Bitcoin is fairing in its journey towards ultimate dominance.
The analysts have claimed that as of 2022, the crypto market was showing more stability than Nasdaq 100, which is a popular stock market index. Both the analysts from Bloomberg predict that though Bitcoin is prone to volatility like any other cryptocurrency, the currency is strongly headed towards breaking key resistance at its 50-day moving average.
Hence, if Bitcoin manages to stay above $46,300 for the whole year of 2022 while Nasdaq 100 stays below 8%, then this movie can be an inflection point for the Crypto space resulting in inequities trading lower while Bitcoin outperforms.
The analysts claim that, “Every day that the Federal Reserve wakes up to rising asset prices, our take is it becomes more concerned about related inflation and inclined to do something about it. Bitcoin is poised to come out ahead of what may be an overdue mean reversion for risk assets.”
Bitcoin Could Outperform Commodities
As per analysts’ assessment, Bitcoin could soon outperform commodities due to its advantages like Bitcoin holding over asset classes during its most volatile trading.
McGlone and his colleagues are of the opinion that, “Constant price discovery without distortions, limits or central-party control are attributes of blockchain-based assets like Bitcoin, and the money is migrating to where it’s treated best.”