Bitcoin trading at a discount, says Bloomberg strategist Mike McGlone – Here’s what could drive BTC’s rally
Mike McGlone, senior commodities strategist at Bloomberg Intelligence, believes Bitcoin (BTC) is trading for less than it should.
McGlone says in a new report that he sees Bitcoin as similar to internet stocks in 2001-2002.
“Our chart shows Bitcoin’s consolidation at its steepest ever discount to its 100-week moving average. Notably, the benchmark crypto last established a similar foundation in 2018-19 at around $5,000 and in 2015 at just under $300. That the price is around $20,000 on Sept. 2 supports our base case: Bitcoin is at a discount within an extended bull market.”
McGlone says it’s possible the world will enter a deflationary recession this year. He argues that “history may see 2022 as the year” Bitcoin joined gold and US Treasuries as an international store of value.
“The benchmark crypto has been one of the best-performing assets since its inception about a decade ago, and we believe there is more to come, especially as it potentially moves to global digital securities with results more aligned to government bonds or gold.”
Bitcoin is trading at $18,902 at the time of writing. The top-rated crypto asset by market cap is down more than 4.4% in the past 24 hours and down more than 6.2% in the past seven days. It also remains more than 72% below its all-time high of around $69,000 set last November.
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