During a recent interview, Mike McGlone, senior commodity strategist for Bloomberg Intelligence, has predicted that Bitcoin will keep outperforming most other cryptocurrencies.
"The key fact is I think it's going to continue to outperform most other cryptos, particularly the Bloomberg Galaxy Crypto Index," he said.
The Bloomberg Galaxy Crypto Index is up 91.67% on a year-to-date basis, recently reaching a new all-time peak of 3,771.37. The index, which was launched back in May 2018, is supposed to measure the performance of the biggest cryptocurrencies by market capitalization. It includes Bitcoin, Ethereum, Solana, Polkadot, Litecoin, Chainlink and several other prominent altcoins.
This diverse basket of cryptocurrencies has substantially underperformed Bitcoin this year. The leading cryptocurrency by market capitalization is up 138% on a daily basis, currently changing hands at $100,787.
In response to a question about whether or not Bitcoin has already reached the top of the currency cycle, the esteemed analyst joked that picking tops is "a good way to lose your hair."
McGlone did not realize that the leading cryptocurrency could move up by another 30% or 40%. However, in order to double in value next year, U.S. stocks would also need to go up by roughly 30%, according to McGlone.
"On a 100-day basis, the Bitcoin to S&P 500 correction is about 0.50. It's the highest in this history," he noted.
He has warned that crypto tends to go down by much more than expected during significant corrections.
McGlone has also opined that Bitcoin is in its early days of becoming a global digital collateral.
For now, Bitcoin remains among the most risky assets, but McGlobe predicts that it will start trading like gold and bonds in the future.
Arman Shirinyan
Alex Dovbnya
Dan Burgin
Denys Serhiichuk