- Bitcoin is outperforming commodities and gold so far in 2023, with BTC showing a 10x outperformance of the precious metal.
- Mike McGlone, a senior macro strategist at Bloomberg Intelligence, says Bitcoin could be in a new super cycle.
- He earlier noted BTC above $25,000 demonstrated the cryptocurrency’s divergent strength.
Mike McGlone, a senior macro strategist at Bloomberg Intelligence, has noted that the crypto sector could be looking at a new super cycle amid bitcoin’s outperformance of commodities.
According to the analyst, Bitcoin (BTC) is so far beating top performing commodity asset gold in 2023, with BTC up nearly 10x more to suggest the flagship cryptocurrency may be in a super cycle. BTC price is up 79% year-to-date at the time of writing. Comparatiely, gold price has only gained 5.8% YTD, currently poised around $1,942.
McGlone shared the outlook in comments shared via Twitter on Tuesday, his view of the market coming as bitcoin price continued to hover above $28,000.
“Looking for a super cycle? Bitcoin Outperforms Commodities With Declining Risk – Bitcoin beating gold, the top-performing old-guard commodity in 2023 to March 20, by almost 10x may be indicative of a super cycle happening in the crypto,” the Bloomberg strategist stated.
Bitcoin’s divergent strength
According to McGlone, Bitcoin has one advantage over most commodities – its “nascent stage of low and rising adoption” as well as diminishing supply. He observes that BTC shows an elongated upward trajectory in terms of its price when compared to the Bloomberg Commodity Spot Index.
The outlook is similar across most assets and that despite a bottoming out of the 260-day volatility relative to commodities, Bitcoin is likely to recover vastly versus the asset class as bulls eye new highs.
As for the latest spike in Bitcoin price, the analyst points to the banking crisis and the issues around fractional reserves. In his view, such concerns are likely to be “shining a light” on Bitcoin’s attributes. On what could happen next for BTC, he opined:
“Relative strength vs. most assets may portend Bitcoin’s inflection toward global digital collateral and potential to trade more like gold [and] US Treasury bonds. Central banks still tightening despite plunging commodities and a banking crisis adds to severe economic-reset risks.”
Relative strength vs most assets may portend #Bitcoin‘s inflection toward global digital collateral and potential to trade more like #gold, US Treasury #bonds. Central banks still tightening despite plunging #commodities and a #BankingCrisis adds to severe economic-reset risks pic.twitter.com/OhZOnbbbNw
— Mike McGlone (@mikemcglone11) March 21, 2023
Last week, McGlone pointed to the events in the finance and banking industry as a factor that could aid Bitcoin’s march towards becoming more of a hedge asset. Continuing weakness in the banking ecosystem portended a scenario where the benchmark cryptocurrency eventually trades like gold and US Treasury long bonds.
Bitcoin’s resilience above $25,000 would be an indicator of its divergent strength, he added.
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