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Mike McGlone, leading commodity strategist for Bloomberg Intelligence, took to Twitter to express his thoughts on the prospects of a Bitcoin price reversal in the near future. He believes it may happen despite the "beating" taken by the digital gold this year, along with most other assets.
Here's what will push BTC price up, per McGlone
According to a screenshot from a Bloomberg Intelligence report shared by McGlone, the levels that resisted Bitcoin and the Nasdaq 100 stock index have now been turning into support.
Per the graph, in the years 2020 and 2021, the Bitcoin price skyrocketed, reaching an all-time high near the $69,000 level in the fall of last year on the back of massive quantitative easing programs implemented by the Federal Reserve.
This year, instead, the U.S. central bank has been raising interest rates as part of its hawkish stance in an attempt to tame the quickly rising inflation wave.
Bitcoin's level of annual volatility at the end of this year, the report says, can be compared with 4x BTC volatility in late 2021. According to the tweet, the Fed needs to stop its rate hikes and get back to monetary easing again to let Bitcoin "resume outperforming."
A Warm Spell Ahead: Bitcoin Crosses vs. Propensity to Outperform - The world's benchmark digital asset has taken a beating in 2022 with most others, but #Bitcoin appears poised to resume its inclination to outperform. When the #Fed pivots to easing... pic.twitter.com/87ze4l3Fqe— Mike McGlone (@mikemcglone11) December 19, 2022
"Bitcoin looks to rise vs TSLA"
In a tweet published a few hours later, McGlone returned to the topic he had mentioned earlier this December — Bitcoin performance versus that of TSLA.
He believes that Bitcoin looks to "regain upper hand over Tesla." The reason for that is that Bitcoin's supply keeps declining, while the amount of Tesla shares is rising. He expects BTC to rise v. the stock of the e-car giant run by Elon Musk "if the rules of economics apply."
In early December, as reported by U.Today, McGlone shared on Twitter that both Bitcoin and Tesla lost around $500 billion in market cap this year since February. However, he expects BTC to outperform TSLA because the world keeps heading toward digitization, and Bitcoin is facing a growing supply decline, massive adoption and demand.
As for Tesla, Bloomberg's expert stated that it is likely to face rivalry with other players on the market.
Bitcoin Crosses, the Crypto Looks to Regain Upper Hand Over Tesla -- The near certainty of declining #Bitcoin supply vs. the rising amount of #Tesla shares outstanding favors outperformance by the crypto, if the rules of economics apply. pic.twitter.com/JNQVpOB6za— Mike McGlone (@mikemcglone11) December 19, 2022