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HomeCrypto NewsBitcoin May Have Kicked off a 'Supercycle' - Bloomberg Analyst

Bitcoin May Have Kicked off a ‘Supercycle’ – Bloomberg Analyst


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The asset has significantly outperformed gold this year.

Bloomberg Intelligence Senior Macro Strategist Mike McGlone has asserted that Bitcoin shows indications of a potential supercycle.

For context, a supercycle is an extended period of strong growth characterized by sustained demand that exceeds the available supply.

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In a tweet yesterday, McGlone pointed out that this year, Bitcoin has outperformed gold, the top performer amongst traditional assets, by “almost 10×.” According to the analyst, the performance indicates a crypto supercycle, noting the low adoption phase and limited supply of the leading digital asset favor this outcome. Consequently, the analyst suggests we will likely see increased Bitcoin volatility compared to traditional commodities as the asset forges its path to new highs.

Furthermore, McGlone notes that recent bank collapses would only fuel this rise highlighting the benefits of Bitcoin and fully backed dollar stablecoins in contrast to the fractional reserve system operated by banks.

The statements from the analyst come as the digital asset delivered another impressive showing over the weekend to break above $28k. At press time, the asset has held above the $25k price point for nearly seven days. Recall that McGlone had asserted that the asset’s price had to hold above this level to signal a sustained price rally. As highlighted in a previous report, the BTC’s price has rallied by over 40% since the Silicon Valley Bank collapse.

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Meanwhile, there will likely be some volatility in the markets today as the Fed is scheduled to release a rate hike decision following its two-day policy meeting. The expectation is that the metric would see another 25 basis point hike, but some speculate that the Fed may even be forced to consider a pause in its tightening regime in the wake of exposed frailties in the banking system.

In a Twitter thread today, Economist Alex Krüger gave about six possible scenarios of the Fed meeting outcome and potential corresponding BTC price reactions. Notably, the outcomes highlighted by the analyst were largely positive for the digital asset in varying degrees. Furthermore, Krüger cautions those trading the news that the ensuing price reaction could easily be reversed the next day, citing price action from May 4-6, 2022.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Okoya David
Okoya David
Okoya David Kio is a crypto enthusiast passionate about understanding what makes the nascent market tick. When he's not pondering about cryptocurrencies, you might find him in a BP debate room trying to proffer solutions to age-old societal problems.

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