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"Simply Bull Market": Bloomberg's Mike McGlone on Bitcoin in Early 2022

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Sat, 20/11/2021 - 14:53
"Simply Bull Market": Bloomberg's Mike McGlone on Bitcoin in Early 2022
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Mike McGlone, Bloomberg Intelligence Commodity Strategist, has taken to Twitter to indicate four causes behind the optimism of Bitcoiners.

Increasing adoption vs. declining supply

Mr. McGlone shared three graphs: the dynamics of Bitcoin's (BTC) average annual price, Bitcoin's Liquid Index (1Q timeframe) and the ratio between the Bitcoin price's 260-day volatility and the same indicator for the S&P index.

He added that Bitcoin (BTC) is still experiencing increasing adoption despite being in the nascent stage as both a technology and a digital asset.

Also, he indicated the declining supply as a net positive factor for Bitcoin (BTC) prospects. Bitcoin's emissions are reduced by 50% every two years.

Finally, according to Mr. McGlone, Bitcoin (BTC) is showing obvious signs of maturation. More or less, it is demonstrated by a declining BTC/S&P500 volatility ratio.

Crucial year for the orange coin

As such, Bitcoin (BTC) is approaching 2022 in a clear bull market. The Bloomberg strategist indicated two levels to watch: the support at $50,000 and the resistance at $100,000.

As covered by U.Today previously, the analyst is also optimistic about the mid-term prospects of Ethereum, the second cryptocurrency.

Related

Mr. McGlone attributed the possible Ethereum (ETH) upsurge to $5,000 to increasing demand, declining supply and Ethereum's role in the digital transformation of the finance segment.

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