A prominent Bloomberg analyst thinks that Bitcoin (BTC) is exhibiting indications of approaching a bullish maturity phase in spite of recent price erosions. Bloomberg commodities analyst Mike McGlone informs his 53,700 Twitter followers that Bitcoin “may be entering an irreversible maturity phase” based on it maintaining to its prevailing level of prices since June and behaving at its lowest fluctuation.
“It’s no wonder that a comparatively new asset that had surged has decreased because to the quick rate of Federal Reserve policy tightening this year, but Bitcoin is exhibiting signals of consolidation and diverging strength in 4Q. The least crypto volatility vs. the Bloomberg Commodity Index may predict greater price performance for the numero uno crypto.”
The fact that Bitcoin’s valuation has maintained at $19,000 despite the latest US Federal Reserve benchmark interest rate hikes, according to McGlone, is an indication that it may be acting similar to a risk-off commodity like gold.
“Bitcoin’s increasing leading-indicator reputation and probable move toward a risk-off commodity such as gold and US Treasury long bonds might manifest in the second half of 2022. The key challenge for most riskier assets this year will be strong Fed tightening to combat inflation, as seen in the graph. Indicative of the cryptocurrency’s varied robustness may be the fact that its value of around $19,500 on Oct. 18, when the one-year federal funds future (FF13) indicated rates near 4.75 percent, was roughly the same as June, when the FF13 was close to 3.75 percent.
