Bitcoin staying at $19,000 may be an indication of an enduring bull market, Bloomberg’s chief strategist believes
Chief commodity strategist of Bloomberg Intelligence, Mike McGlone, has posted a tweet, in which he again assumes that Bitcoin may be seen as a store of value and it may rise beating the S&P 500 index.
McGlone tweeted that Bitcoin trading at $19,000 may “gain upper hand” vs S&P 500 that is changing hands at $3,600 at the moment.
Bitcoin at $19,000 Could Gain Upper Hand vs. 3,600 S&P 500 – The lowest #Bitcoin price ever vs. its 200-week moving average and the fact that the level on Oct. 18 is about four times the 1Q20 swoon’s closing low may signal an enduring bull market after a steep discount. pic.twitter.com/NJps7qdQUi
— Mike McGlone (@mikemcglone11) October 20, 2022
The screenshot from a recent Bloomberg report posted with the tweet, says that S&P 500 has dropped around 20 percent this month so far. While the traditional markets are following S&P on the way of the decline, the report points out that Bitcoin is building a base around the $19,000 price mark.
According to the report, a further fall of the S&P 500 price may stop further tightening policy of the Fed Reserve. Hence, the biggest “pump-and-dump” in the US money supply ever seen may prove Bitcoin as a store of value.
Besides that, in an earlier tweet today, McGlone reminded the community that Bitcoin’s finite and diminishing supply is a key factor for its price to “continue to rise over time”. Some unexpected factor may interfere and reverse the demand and adoption trends related to BTC, but McGlone called it “unlikely”.
Bitcoin Primer: Supply Is Straightforward, Declining#Bitcoin‘s definable diminishing supply is unprecedented on a global scale, and so prices should continue to rise over time unless something unlikely reverses demand and adoption trends, given the laws of supply and demand. pic.twitter.com/wzzhYN5sNL
— Mike McGlone (@mikemcglone11) October 19, 2022