Despite the fact that Bitcoin (BTC) is still far from the all-time high it reached in November 2021, the asset, according to some, is showing divergent strength, especially when compared to the stock market.
Bloomberg senior commodity strategist Mike McGlone previously had highlighted that the markets are way overdue for a pretty significant correction, most notably in terms of equities, but recently noted on March 4 that Bitcoin “shows divergent strength.”
Furthermore, Mr. McGlone said that “Digital Gold” is poised to triumph, noting Bitcoin will be subjected to deflationary pressures after the peaks of 2021. He added Bitcoin may be evolving global digital collateral, given its losses in 2002 were less than half of those in the Nasdaq 100.
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The commodity strategist stated:
“Bitcoin $40,000 or Nasdaq 14,000? Digital Gold Set to Prevail – Bitcoin faces deflationary forces after 2021 excesses, but the crypto shows divergent strength. With 2002 losses less than half those for the Nasdaq 100, Bitcoin may be maturing toward global digital collateral.”
Buying opportunity for Bitcoin
It’s worth mentioning that on February 24, following Russia’s invasion of Ukraine, which resulted in a brief dip in Bitcoin’s value, McGlone noted that, even though there are negative risks present, the drop provided a “very good buying opportunity” for long-term investors who had been sitting on their money.
“I don’t think Bitcoin gets much below $30,000. It’s holding good resistance around $40,000. I think this is ultimately going to be a very good buying opportunity for Bitcoin for longer-term traders. It’s going to be looked back upon in history as a defining moment,” he said.
Since then, Bitcoin fell from $39,000 to below $35,000 at the end of last week the flagship digital asset bounced back to briefly climb as high as $45,000 on March 2.
Currently, the BTC is trading at $39,084.85, down 6.25% in the last 24 hours and up 0.61% across the previous week, according to CoinMarketCap statistics.
Bitcoin has a total market worth of $741.6 billion and a market dominance of 42.2%.
Ultimately, as a result of the geopolitical tensions surrounding Russia’s invasion, Bitcoin’s supply activity has soared to its highest level in almost two years which may be one reason why McGlone has called it global digital collateral.
