Mike McGlone, chief commodity strategist of Bloomberg, reckons that Bitcoin may have bottomed out and is showing divergent strength. In September, he tweeted that Bitcoin was going at a discount, when the Federal Reserve made yet another interest rate hike.
"Unstoppable maturation stage" for Bitcoin
McGlone believes that Bitcoin may be entering an "unstoppable maturation stage" at the moment. According to the screenshot, BTC is showing the lowest ever volatility versus the Bloomberg Commodity Index now.
#Bitcoin May Be Entering Unstoppable Maturation Stage: BI Crypto -- The fact that Bitcoin didn't exist in October 2007, when WTI #crudeoil rose to its current $84 a barrel for the first time, may indicate the appreciation advantage of the nascent technology. pic.twitter.com/5WZIV7PmXL— Mike McGlone (@mikemcglone11) October 19, 2022
The screenshot from a Bloomberg Intelligence report on oil and BTC says that Bitcoin may confirm its status as a risk-off asset this year as it has been more or less resistant to the chain of Fed interest rate hikes this year and continues to trade in the $19,000-$20,000 range.
Basically, the report repeated what McGlone has shared on his Twitter handle before: Bitcoin is pretty strongly tied up with the stock market and the U.S. economy overall. Last weekend, BTC demonstrated a pretty low level of volatility, which was likely as the market was waiting for S&P 500 index trading to open.
Bitcoin price action
After the aforementioned BTC rise, when the asset's price went up to hit the $19,800 zone, it then managed to hold close to that level during the next couple of days, recovering to $19,600 on Oct. 18.
However, at the time of this writing, the digital gold has seen its price drop to the $19,220 price mark.