Bloomberg Intelligence analyst Mike McGlone says that Bitcoin (BTC) will continue to see more gains than the stock market as the benchmark crypto asset catapults to a 2022 record high.
In a new interview with Yahoo Finance, McGlone identifies what’s behind Bitcoin’s recent rally after BTC dropped below $40,000 earlier this year.
“The significance of Bitcoin, it really struck me the last few weeks is, it is the most significant fluent widely-traded 24/7 asset ever in the planet and when we saw nickel break down and couldn’t trade for a couple of weeks, people looked over to Bitcoin and say this thing just doesn’t stop trading.”
McGlone says Bitcoin has attributes that make it a valuable asset class.
“Bitcoin’s supply is declining by code and its demand and adoption are rising and you’re really seeing from the war, its value coming out as the store value exchange mechanism. In some places, becoming global collateral. To me, that’s the macro big picture that was pulled down initially with that lower tie from the stock market.”
As Bitcoin recovers, the analyst says that the leading cryptocurrency will continue to outpace the stock market, which is still in the red territory.
“It’s still going to be a pressure factor but I’ll end with this, the significance is Bitcoin is up on the air with 5% or so and the Nasdaq is still down about 7%. It’s showing divergent strength with which I expect to continue.”