Bloomberg Intelligence senior commodity strategist Mike McGlone thinks Bitcoin (BTC) is buying and selling for lower than it needs to be.
McGlone says in a new report that he views Bitcoin as akin to web shares in 2001-2002.
“Our graphic shows Bitcoin consolidating at the steepest-ever discount to its 100-week moving average. What’s notable is that the benchmark crypto last built a similar foundation in 2018-19 at about $5,000, and in 2015 closer to $300. That the price is about $20,000 on Sept. 2 supports our base case: Bitcoin is at a discount within an elongated bull market.”
McGlone says it’s attainable that the world enters a deflationary recession this 12 months. He argues that “history may consider” 2022 to be the 12 months Bitcoin joined gold and US Treasury bonds as a global retailer of worth.
“The benchmark crypto has been one of the best-performing assets since its inception about a decade ago, and we think more of the same is ahead, particularly as it may be transitioning toward global digital collateral, with results more aligned with Treasury bonds or gold.”
Bitcoin is buying and selling at $18,902 at time of writing. The top-ranked crypto asset by market cap is down greater than 4.4% up to now 24 hours and greater than 6.2% up to now seven days. It additionally stays down greater than 72% from its all-time excessive of round $69,000, which it hit final November.
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