Bloomberg Strategist Sees Bitcoin as Global Alternative Currency — Warns Stock Market Drawdown Could

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Bloomberg Strategist Sees Bitcoin as Global Alternative Currency — Warns Stock Market Drawdown Could Impact BTC

By Kevin Helms
Fri Mar 1 20:5:5 EST 2024

Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, says bitcoin is “becoming an alternative currency on a global basis,” noting that “The world’s going towards intangible assets and bitcoin is the most significant in cryptos.” However, the strategist warned that as bitcoin’s price approaches $70,000, a key test for the cryptocurrency may come “when the U.S. stock market has a drawdown.”

Mike McGlone’s Bitcoin Analysis

Mike McGlone, a senior commodity strategist for Bloomberg Intelligence (BI), the research arm of Bloomberg, shared his perspective on bitcoin, gold, and the U.S. stock market several times this week.
“Bitcoin at about $62,000 on Feb. 29 was at its highest month-end price ever, and so was the S&P 500, which may show the crypto’s risk compared with gold. The metal has been hovering above $2,000 an ounce since ending December at $2,063, its month-end record,” McGlone detailed on Friday. “At about 3x the annual volatility of the stock index and gold, a key test for bitcoin may come when the S&P 500 has a drawdown.”
The Bloomberg strategist continued: “What of gold with bitcoin nearing $70,000? Crypto money pull — The juxtaposition of China rapidly accumulating gold and record inflows into U.S. bitcoin ETFs may leave the metal looking naked in portfolios if not paired with some of the crypto.” He emphasized:

Gold ETF outflows and declining futures open interest vs. the opposite in bitcoin could portend a firming crypto foundation for a big test — when the U.S. stock market has a drawdown.

The strategist further detailed: “Bitcoin futures have been around since 2017, and interest in the newcomer is far outpacing gold, with implications for prices. On a one-year basis to Feb. 29, aggregate open interest (OI) in the CME traded gold future has dropped about 5% vs. about a 60% rise in bitcoin OI.” He noted that his graphic shows that “this isn’t a short-term phenomenon.”

McGlone also explained in a recent interview that “We are seeing clear outflows” from gold ETFs and there have also been outflows from large cap and stock indices to buy new spot bitcoin ETFs. In another X post, the strategist opined: “It’s hard to fight the facts of significant gold ETF outflows and bitcoin ETF inflows.”
The strategist explained on Bloomberg TV Wednesday: “The world’s going towards intangible assets and bitcoin is the most significant in cryptos.” McGlone also referred to bitcoin as an alternative global currency, stating:

It’s becoming an alternative currency on a global basis.

What do you think about the analysis and statements by Bloomberg’s senior commodity strategist Mike McGlone? Let us know in the comments section below.

TAGS IN THIS STORY

bitcoin futures, Bitcoin Price Predictions, bitcoin prices, Bitcoin vs gold, bloomberg strategist, Crypto, Cryptocurrency, Mike McGlone, spot bitcoin ETFs

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