Mike McGlone said Bitcoin showing its evolution into digital collateral
While Bitcoin (BTC) has not yet hit the all-time highs established in November 2021, some feel it is displaying relative durability as a risk asset during times of less-than-smooth sailing, indicating that it may one day become fully fledged digital collateral.
Mike McGlone, Bloomberg’s senior commodities analyst, tweeted on March 14 that the behaviour of this digital asset “in an ebbing tide for risk assets” in the first quarter of 2022 may suggest its “maturation into digital collateral, in a world that is moving that way.”
Mr. McGlone illustrated his claim by comparing the 100-week moving averages of West Texas Intermediate (WTI) crude oil futures and Bitcoin, implying that the virtual currency may be a safer option than the conventional product.
Finbold previously reported on Mr. McGlone’s views, in which he said that Bitcoin, which he referred to as “digital gold,” was demonstrating “divergent strength” and may evolve into global digital collateral.
McGlone, for example, noted that Bitcoin may be growing into worldwide digital collateral, given that its 2002 losses were less than half those of the Nasdaq 100.
“Bitcoin confronts deflationary headwinds after the excesses of 2021, yet the cryptocurrency shows diverging strength. With losses in 2002 less than half those of the Nasdaq 100, Bitcoin may be maturing into worldwide digital collateral.”
Mr. McGlone’s confidence in Bitcoin did not waver in February, when the price experienced a momentary setback as a result of Russia’s invasion of Ukraine. Notably, he described it as a “really strong purchasing opportunity” for long-term investors, noting that the price, in his view, would not go below $30,000.
Bitcoin’s price has risen 12.1 percent since then, from $34,726 on February 24 to $38,943 at press time (March 14), according to CoinMarketCap statistics.
The previous seven days had seen a little more steadiness, with the price growing by just 1.67 percent — from $38,305. At press time, the cryptocurrency’s 24-hour price history indicates a minor upward trend of 0.16 percent.