Mike McGlone anticipates a Bitcoin Supercycle due to the asset’s raving performance despite economic circumstances.
Commodity strategist Mike McGlone believes that a Bitcoin (BTC) Supercycle is on the horizon amid the leading crypto’s 2023 price upswing. According to the Bloomberg Intelligence senior commodity strategist, BTC’s recent performance compared to gold proves his claim. The prominent digital currency has outperformed gold almost tenfold this year and appears set to continue rising. McGlone also added that Bitcoin is on course for “new highs” if past trends hold, with volatility more likely to recover compared to commodities.
McGlone first intimated his substantial Twitter followership on his Bitcoin Supercycle predictions. Also identifying the crypto’s low and rising adoption and diminishing supply as a significant advantage over gold, he said:
“Looking for a super cycle? Bitcoin Outperforms Commodities With Declining Risk – Bitcoin beating gold, the top-performing old-guard commodity in 2023 to March 20, by almost 10x may be indicative of a super cycle happening in the crypto.”
McGlone also pointed out that Bitcoin could be transitioning from being a high-risk asset to a buffer against economic instability. Referencing the ongoing US banking crisis, the senior macro strategist juxtaposed BTC with the KBW banking index. McGlone ascribed significantly more divergent strength to Bitcoin, saying:
“Relative strength vs. most assets may portend Bitcoin’s inflection toward global digital collateral and potential to trade more like gold, US Treasury bonds. Central banks still tightening despite plunging commodities and a Banking Crisis adds to severe economic-reset risks.”
Analyst Believes Prevailing Economic Conditions Could Further Induce Bitcoin Supercycle
Last week, McGlone also explained why he expected BTC to continue to outperform gold and the stock market. He pointed out that macroeconomic parameters such as Fed hikes, inflation, and the Eastern European war could steepen Bitcoin’s maturation. McGlone noted that the ongoing Fed battle against inflation would further aid BTC’s outperformance over gold and traditional stocks.
The Bloomberg commodity strategist also doubts the global economy would endure the same periods of heavy dollar liquidity as 2022. As a result, investors are more likely to adopt a keener outlook toward Bitcoin. So far, Bitcoin has also outperformed 97% of companies listed in the S&P 500 index this year. Only 12 companies managed to deliver higher yields than Bitcoin in 2023, with the remaining 488 falling short. Some of these companies include Meta Platforms (NASDAQ: META), Tesla (NASDAQ: TSLA), Salesforce (NYSE: CRM), Nvidia (NASDAQ: NVDA), and Warner Bros (NASDAQ: WBD).
McGlone also recently touched on how the recent collapse of Silicon Valley Bank (SVB) and Signature Bank impacted Bitcoin. “Banking issues may define Bitcoin, crypto dollars — Bitcoin may be progressing to trade more like US Treasury long bonds and gold as banks come under stress on the back of the bond-price collapse,” said he.
McGlone also added that a sustained BTC price higher than $25K clearly indicates divergent strength. Interestingly, several analysts remain optimistic that Bitcoin could eventually breach the $100K threshold.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
![Bitcoin [BTC], Gold, S&P 500 and a case of the widening correlation](https://www.blocpress.com/wp-content/uploads/2023/03/chart-1905225_1920-1000x600-120x86.jpg)
