Last Updated: 22 March 2023
Bloomberg Intelligence Senior Macro Strategist, Mike McGlone, suggests that Bitcoin’s remarkable outperformance of gold may indicate the emergence of a new supercycle for the leading cryptocurrency. McGlone predicts that Bitcoin may transition from a risk-on asset to a more defensive investment against economic instability and banking crises.
Bitcoin Outperforming Gold by 10x
McGlone emphasized Bitcoin’s advantages over gold, including its low but growing adoption rate and diminishing supply. He tweeted, “Bitcoin beating gold, the top-performing old-guard commodity in 2023 to March 20, by almost 10x may be indicative of a supercycle happening in the crypto.” The strategist believes that Bitcoin’s outperformance of gold is a clear indication of the growing dominance of digital assets.
Bitcoin as a Global Digital Collateral
McGlone compared Bitcoin to the KBW banking index, which tracks publicly traded leading banks and thrifts in the U.S. He highlighted a significant divergence in strength favoring Bitcoin, indicating its potential to trade more like gold and U.S. Treasury bonds. The strategist believes that Bitcoin’s relative strength against most assets may portend its inflection towards global digital collateral.
Investing in Bitcoin, Gold, and Bonds
McGlone predicts that investors will focus more on assets like Bitcoin, gold, and bonds as the global economy is unlikely to experience heavy dollar liquidity. He argues that the lessons of inflation due to rapid and excessive “re-liquefication” will resonate for our lifetimes. With a potential recession on the horizon, McGlone believes investors will be more inclined to buy into assets such as gold, bonds, and Bitcoin during market dips.
In conclusion, Bloomberg Intelligence Senior Macro Strategist Mike McGlone predicts a new Bitcoin supercycle and a shift in investment strategy towards defensive assets such as Bitcoin, gold, and bonds. Bitcoin’s outperformance of gold by almost 10x in 2023 is a clear indication of the growing dominance of digital assets. With a potential recession on the horizon, investors are more likely to buy into these assets during market dips, as they become more valuable as defensive investments.
Investors who want to capitalize on Bitcoin’s potential supercycle and the shift towards defensive assets may consider opening an account with a reputable online trading platform like Bitcoin Bank or BitIQ. These platforms offer access to a range of financial instruments, including cryptocurrencies, commodities, and bonds, allowing investors to diversify their portfolios and take advantage of market trends.