• Bitcoin is up massively since the start of the year, making it one of the best performing assets of the year according to Bloomberg Intelligence.
• Bloomberg’s senior macro strategist, Mike McGlone, compares the rally to a similar recovery in early 2019 – but in a macro environment of contracting liquidity.
• Bloomberg’s bias is that the rally signals a bottom or a “bouncing bear,” but with a key distinction compared to 2019’s early-year turnaround.
Bitcoin has been one of the best performing assets of the year according to Bloomberg Intelligence, having risen massively since the start of the year. Mike McGlone, the firm’s senior macro strategist, compared the rally to a similar recovery in early 2019 – but in a macro environment of contracting liquidity. With Bloomberg’s bias leaning towards the rally signalling either a bottom or a “bouncing bear,” a key distinction was made compared to 2019’s early-year turnaround.
The news of Bitcoin’s success has been met with much enthusiasm, with some believing that the bull market is back and others cautiously optimistic about the future of the digital asset. McGlone commented on the situation, noting that the rally is “reinforcing the digital asset’s resilience, although it’s too early to determine if Bitcoin is definitively back in a bull market.” He further stated that “The rally is different from the 2019 recovery as monetary stimulus is contracting and the risk of a dollar shortage is rising.”
McGlone has previously shown optimism towards Bitcoin, noting that “The scarcity of Bitcoin and its limited supply should underpin higher prices over time,” and that “Bitcoin has the potential to become a global currency.” Bloomberg’s report further stated that the digital asset’s price could be headed higher due to its “relative scarcity and increasing acceptance.”
The news of Bitcoin’s success has been met with much enthusiasm, with some believing that the bull market is back and others cautiously optimistic about the future of the digital asset. The cryptocurrency has seen a surge in demand as institutional investors look to diversify their portfolios, with the digital asset now being seen as an attractive alternative asset class.
As the global economy continues to struggle, Bitcoin may prove to be a safe haven asset, providing investors with a hedge against inflation. With its limited supply and increasing acceptance, the digital asset could be poised to become a global currency and revolutionize the way we think about money. Despite the uncertainty that still surrounds the cryptocurrency, there is no denying that Bitcoin has made an impressive start to the year.
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