Bloomberg Senior Commodity Strategist Says Bitcoin is Showing Divergent Strength

Bitcoin (BTC) has been considered one of the riskiest financial assets due to its massive price fluctuations over the years. 

The world’s largest cryptocurrency, which peaked at an all-time high (ATH) of $69,047 in late 2021, has seen its value dip below $33,000 this year due to rising inflation and the ongoing armed conflict between Russia and Ukraine. 

Interestingly, despite the unfavorable global economic events, including the ongoing Russian invasion and rising inflation, Bitcoin has responded positively and has shown “divergent strength” in recent weeks. 

It is worth noting that the largest cryptocurrency is currently trading around $47,253 on major spot exchanges, representing a 6.2% surge in the last 24 hours. 

Bitcoin “Taking Risk-Off”?

Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, pointed to a tweet today quizzing his followers with a rhetorical question about whether Bitcoin is “taking the risk-off baton,” an investment setting whereby price behavior is determined by investors risk tolerance for high-risk assets like BTC. 

For the Bloomberg financial analyst, despite the resilience the asset class has shown over the past few weeks compared to other financial instruments, especially during the rising inflation and ongoing Russian invasion of Ukraine, critics seem to be more focused on how BTC will perform by year-end. 

“Bitcoin Taking Risk-Off Baton? 1Q may be just another blip in the trend of rising risk assets amid the highest inflation in 40 years and war in Europe, yet our bias is that the 2022 endgame isn’t likely to be that easy,” McGlone tweeted. 

#Bitcoin Taking Risk-Off Baton? 1Q may be just another blip in the trend of rising risk assets amid the highest inflation in 40 years and war in Europe, yet our bias is that the 2022 endgame isn't likely to be that easy. Bitcoin — is showing divergent strength. pic.twitter.com/Aim38HvJW3

— Mike McGlone (@mikemcglone11) March 28, 2022

Regardless of traditional investors’ bias toward Bitcoin, McGlone maintained that the world’s largest cryptocurrency has continued to show divergent strength against the Nasdaq Index. 

McGlone Standing Up for Bitcoin 

McGlone has always been vocal about his opinion on Bitcoin and has taken to Twitter to air his views despite the fact that these takes could be hurting some traditional financial investors. 

Last year, the Bloomberg analyst predicted that Bitcoin would hit $100,000 by the end of 2021. However, the world’s largest cryptocurrency only managed to slightly surpass $69,000 at the time. 

Earlier this month, McGlone urged investors of popular yellow metal gold to include Bitcoin in their portfolio in order to avoid suffering huge losses in the future.