Chief commodity analyst at Bloomberg Mike McGlone has taken to Twitter to say that Bitcoin is in a good position at the moment, despite the big "discount" it is trading at.
"Bitcoin joins gold and US Treasuries as global store of value"
McGlone shared a screenshot with an extract from a recent Bloomberg report. According to it, this year, the leading digital currency has joined the line of other major assets – gold and U.S. Treasuries – becoming a global store of value.
While commodities and global GDP have been declining, the Fed promises more interest rate hikes as part of its hawkish stance to fight inflation. This strategy of the U.S. central bank was caused by the big rise in energy prices globally in the first half of the year.
In the meantime, Bitcoin has been holding near the $20,000 level, going only slightly below it.
Sept. #Cryptos Outlook- There are few more powerful forces than stocks declining at high velocity, particularly with the #Fed tightening as the world leans toward recession. Cryptos are a minor part of the ebbing tide but not from an advancing technology, leading-indicator status pic.twitter.com/0Bnj4saAfm— Mike McGlone (@mikemcglone11) September 6, 2022
"Bitcoin at discount during elongated bull market"
The report also says that Bitcoin is currently going away at a discount on an elongated bull market. The graph shared in the report shows that similar steep falls have taken place twice before – in 2015 and 2018-19, when Bitcoin fell to $300 and $5,000, respectively, from higher levels.
After those plunges, the flagship crypto soared. McGlone believes the same may happen this time too.