Bloomberg: Bitcoin Could Hit the US Treasury – Crypto News
- Bloomberg analysts believe it is possible that bitcoin could lose its correlation with stocks and become a competitor to the US Treasury.
- He believes that bitcoin is unlikely to trade below the 200-week moving average for any length of time.
Bloomberg Intelligence recently released its August Crypto Outlook report. According to Bloomberg’s crypto market research, bitcoin will play a big role in global finance.
Bloomberg is confident that over time, bitcoin will emerge as a hedge asset and behave like gold and government bonds while detracting from the performance of the stock market. US Treasury bonds, also known as T-bonds, are fixed-yield government bonds with maturities of 20 to 30 years.
Mike McGlone, Senior Commodity Strategist at Bloomberg and Jamie Couts, Senior Market Structure Analyst, present a detailed analysis.
Bloomberg Commodity Outlook, August Edition – Full Documenthttps://t.co/l15ImymcxN
— mike mcglone (@mikemcglone11) August 1, 2022
He compared the bitcoin markets to the bonds, gold and oil markets. He also noted that there are more parallels between bitcoin and the Treasury market as a result of recent macroeconomic data and the actions of the Federal Reserve. The Bloomberg Intelligence report stated, among other things:
“Tense markets and slowing global growth are supporting the US Federal Reserve’s move to ‘meet-to-meeting’ bias in July, which could help steer bitcoin in a direction where it looks like a US Treasury.” , don’t like share.
Bitcoin has been a top-performing asset since its inception nearly a decade ago, and we believe it will remain so in the future.
Bitcoin could be preparing for the biggest bull run
In the report, Mike McGlone stated that bitcoin is unlikely to stay below the 200-week moving average for any length of time. He added that July was the biggest loss month ever for bitcoin investors. Both analysts wrote that the risk-reward ratio is in favor of bitcoin and could set the stage for one of the biggest bull markets in history.
At press time, bitcoin is trading at $23,081 with a market cap of $441 billion. It is currently trading above its 200-week SMA at $22,827.
Analysts also noted that bitcoin is trading at a 70% discount to its peak. This shows the huge potential of bitcoin. The report stated:
“There is no doubt that the revolutionary asset, which trades consistently and has no projects or obligations to anyone, is gaining leading risk indicator status. The question is, what will bitcoin signal, and our bias towards the cryptocurrency. To evolve into a store of value that has the potential to function as a high-beta version of US Treasury or gold.
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