A senior strategist at Bloomberg Intelligence, Mike McGlone, recently revealed some intriguing views on Bitcoin’s performance. Without merely citing his tweets, let’s dissect what his analysis says.
BTC saw a 15% decline in the third quarter as of September 1 while the Nasdaq 100 Stock Index enjoyed a 2% increase. McGlone thinks that this variation could point to a crucial distinction.
According to McGlone, the relative weakness of Bitcoin might be a precursor to a larger stock market decline and could even portend an impending recession. Alternately, it may just indicate that Bitcoin is falling behind conventional stocks.
The difference
The impact of rising interest rates is one important element McGlone highlights. In November, according to federal funds futures, rates will increase to roughly 5.42%, a major departure from the near-zero rates of 2021 and 2011. The financial markets as a whole, as well as Bitcoin, may be significantly impacted by this change.
Analysing the data reveals that over the past year, both Bitcoin and the Nasdaq have had gains of almost 30%. However, when risk is taken into account, Bitcoin shows more volatility over its 260-day average than the Nasdaq.
These findings have spurred debates over the future of Bitcoin, with some industry professionals suggesting that the cryptocurrency may have entered a bear market after reaching its high in 2021. The ramifications of Bitcoin’s recent success are crucial for investors everywhere since the digital currency has increased significantly since it started trading at $1 in 2011.
