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Bitcoin to outperform 'most major assets' in second half of 2022:

Mike McGlone, senior commodity strategist, stated that while global interest rate hikes are placing negative pressure on most assets, Bitcoin is getting the upper hand when contrasted to commodities and tech stocks

06-Oct-2022 By: Rohit Tripathi
Bitcoin to outperfor

Mike McGlone, senior commodity strategist, stated that October 

has historically been the greatest month for Bitcoin (BTC), with gains averaging over 20% for the month, and that commodities looking to peak might signal that Bitcoin has found its bottom.

According to McGlone's Oct. 5 Crypto Outlook report, while global interest rate hikes are placing negative pressure on most assets, Bitcoin is getting the upper hand when contrasted to commodities and tech stocks like Tesla, with the report noting:

“When the economic tide changes, we expect Bitcoin, Ethereum, and the sources Galaxy Crypto Index will beat the majority of mainstream assets.”

McGlone notes that Bitcoin has the lowest volatility in history when compared to the BCOM, which follows the price movements of major commodities such as gold and crude oil, and that historically, Bitcoin volatility is more likely to rebound as compared to commodities when the crypto reaches new highs.

Following low volatility throughout September and a potential peak in commodity prices, McGlone believes Bitcoin will shift toward being a risk-off asset, similar to gold and US Treasurys, in the second half of 2022.

Bitcoin has historically been highly correlated with tech companies, and its volatility makes it a risky asset that traders are likely to sell in an environment when investors are eager to reduce risk.

Another piece of data released on Oct. 4 supports the claim that Bitcoin is becoming more like "digital gold," with Bitcoin's correlation to gold reaching its highest level in more than a year at +0.4, as the US dollar strengthens and interest rates increase.

COINGABBAR VIEWS: A correlation of +1.0 indicates that the movement of two separate assets is synonymous; for example, if the two assets had a correlation of +1.0, a 10% gain in gold would be mirrored by a 10% increase in Bitcoin.

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