With Bitcoin (BTC) continuing to trend around the $31,000 area it reached following multiple spot Bitcoin exchange-traded fund (ETF) applications by renowned organizations, Bloomberg’s commodities expert has analyzed its possible fate in the second half of 2023.
As it happens, Mike McGlone noted that the flagship decentralized finance (DeFi) asset’s gain of 84% in the first half of 2023 “was about double that of the Nasdaq 100 and consistent in annual volatility (risk-adjusted),” according to the observations he shared in a tweet on July 6.
At the same time, he believes that it is the second half of 2023 “that may define the benchmark crypto as a high-beta version of the stock market, or for its potential to be digital gold in a world going that way.” In McGlone’s opinion:
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“Our bias is somewhat in the middle. We view a true test of Bitcoin is likely to come when the stock market enters a bear market at some point, typical in US recessions.”
According to him, considerable Fed easing accompanied the 50% S&P 500 drawdowns in the two major economic contractions since the start of the millennium, but “that may have changed” as “the Fed is unlikely to ease due to stubborn inflation.” As he added, Bloomberg’s graphic “shows Bitcoin hovering at the $30,000 pivot but trailing the Nasdaq’s 2Q rush.”
Bitcoin price analysis
Meanwhile, Bitcoin was at press time changing hands at the price of $30,073, recording a decline of 4.19% in the last 24 hours and a 2.45% drop over the previous seven days but still clinging on to the 12.17% gain on its monthly chart, according to the data retrieved by Finbold on July 7.
Interestingly, Larry Fink, the CEO of the world’s largest asset manager BlackRock (NYSE: BLK), which has started the wave of spot Bitcoin ETF applications, has recently taken a more aggressive pro-Bitcoin stance, publicly touting the maiden cryptocurrency as digital gold.
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