As the cryptocurrency market begins its slow recovery after a bearish streak and barely manages to remain above the $2 trillion market capitalization, some experts believe that crypto assets are ahead of the other markets.
McGlone, who is a strong believer in the ‘divergent strength’ of cryptocurrencies, has illustrated this strength in the context of the currently developing financial situation:
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“The key thing about crypto this year is that they are part of an ebbing tide of the lower stock market and the Federal Reserve fighting inflation, [as well as] almost all central banks in Western countries (…), yet they’re coming out ahead.”
He explained that, on the year, Bitcoin (BTC) was almost unchanged, while the Nasdaq was down about eight percent. Yet, he said, “Bitcoin trades three times the volatility of the Nasdaq.”
Bloomberg’s commodity expert reiterated his position that cryptos were showing divergent strength and that they should continue to come out ahead. He added that:
“The overall greater risk is that the tide ebbs a little further, the Nasdaq and S&P 500 make new lows in the near, which is likely, and Bitcoin follows that, but comes out ahead.”
In early March, McGlone noted that Bitcoin in particular was showing divergent strength, especially when compared to the stock market. As Finbold reported, he also suggested it could be maturing into a ‘global digital collateral’, given its losses in 2020 were less than half of the Nasdaq 100’s.
Some pushback expected in reaction to major hacks, McGlone believes
McGlone’s most recent comments were made in response to the host’s question about the effect of the events like the recent hack of Axie Infinity (AXS) on the investors’ willingness to participate in the cryptocurrency market.
According to him, some pushback is to be expected “from investors who are just starting to dip their toes into the water.”
However, “it wasn’t one of the bigger ones – Bitcoin, Ethereum, or any of the crypto dollars which are really more significant.” In his words, it’s one of the things to be addressed to make the market even stronger.
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