As the cryptocurrency market continues to demonstrate strength amid the widespread financial crisis that has already toppled several banking giants, Bitcoin (BTC) has surpassed the key $28,000 price level, in turn outperforming commodities in recent months.
Indeed, senior commodity strategist at Bloomberg, Mike McGlone, shared his analysis of the flagship decentralized finance (DeFi) asset’s performance in 2023, which suggests that Bitcoin has outperformed gold, “the top-performing old-guard commodity,” almost 10-fold, as he explained on March 21.
‘Super cycle’ in progress?
According to McGlone, such a strong performance of the maiden cryptocurrency compared to commodities “may be indicative of a super cycle happening in the crypto,” made possible by “Bitcoin’s nascent stage of low and rising adoption vs. diminishing supply.”
As the strategist highlighted, the above graphic was “typical compared with most assets,” but what is “unique relative to commodities is the 260-day volatility of Bitcoin bottoming from a new low.” According to him, “if past trends hold, the crypto’s volatility is more likely to recover vs. commodities when Bitcoin heads toward new highs.”
On top of that, the commodities expert noted that the current crisis in traditional finance could be helping Bitcoin and stablecoins to come out as a suitable alternative thanks to their advantages as opposed to banks:
“The banking crisis and issues with fractional reserves may be shining a light on the attributes of Bitcoin and crypto dollars fully backed by [Treasury bills (T-bills)].”
Bitcoin price advances
Meanwhile, things are looking good for the largest digital asset by market capitalization as, at press time, it was changing hands at the price of $28,148, which represents an increase of 1.67% on the day, 13.21% across the past week, as well as 17.38% over the previous 30 days, as charts indicate.
Furthermore, Bitcoin has added over $200 billion to its market cap in 2023 alone, while five leading banks in the United States lost an aggregated $108.92 billion during the same period, whereas the crypto ‘Fear & Greed’ index hit a 16-month high, indicating high purchase interest, as Finbold reported on March 21.
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