Despite the cryptocurrency market’s decline from the first half of 2022 carrying over into H2, Bloomberg senior commodity strategist Mike McGlone believes Bitcoin (BTC) could actually outperform in the second half of the year.
Specifically, in his tweet on July 25, McGlone stated, “Bitcoin may be regaining its propensity to outperform in H2.” As he explained:
“The long commodity unwinds, copper’s fastest decline since 2008, and the US bond future’s recovery from the steepest dip vs. its 50-week mean since the 1987 stock market crash, all coming amid an aggressive Federal Reserve tightening, may coincide with a bottoming crypto.”
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McGlone also added that “the 2H view for what have been enduring bull markets in Bitcoin and bond futures could come down to the fact that they just don’t get much colder.”
According to the strategist, Bitcoin “has been one of the fastest horses in the race since its inception about a decade ago.” For this reason, “we think more of the same is ahead, particularly as Bitcoin may be transitioning toward global collateral, with performance more aligned with Treasury bonds or gold.”
Bitcoin volatility versus other assets
In his second tweet, McGlone pointed to Bitcoin’s low volatility compared to other assets, stressing that:
“The lowest-ever Bitcoin volatility vs. the Bloomberg Commodity Index (BCOM) may portend a resumption of the crypto’s propensity to outperform. Our graphic showing the elongated upward trajectory of Bitcoin’s price vs. the BCOM is typical compared with most assets.”
As Finbold reported in early July, the senior commodity strategist expressed his view that Bitcoin losses in the first half of 2022 could act as a foundation for investors, stating that its price movements at the time could be rewarding to responsive investors based on previous rallying foundations.
At press time, Bitcoin is trading at $21,081, down by 4.32% on the day, and 4.11% across the previous seven days, according to CoinMarketCap data.
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