AllurecapitalNetwork

06/09/2021

Bloomberg senior strategist calls Bitcoin a global reserve asset on the path to $100K

Bloomberg’s senior commodity strategist Mike McGlone has doubled down on call for six-figure Bitcoin (BTC), arguing that the first-born cryptocurrency is well on its way to becoming a global reserve asset that complements the United States dollar.

The September edition of Bloomberg’s Crypto Outlook called $100,000 BTC and $5,000 Ether (ETH) the “path of least resistance” after the two assets survived a more than 50% correction through the summer.

“Crypto-assets appear in a revived and refreshed bull market with the 2H benefit of a steep discount from previous highs at the start,” wrote McGlone, referring to the second half of 2021. He said portfolios lacking BTC or ETH exposure are “naked,” as evidenced by the relative underperformance of gold and government bonds:

“Portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix. A macro risk-off decline is a primary threat for the crypto bull market.”
While predictions for six-figure Bitcoin are nothing new, McGlone’s long-term forecast puts BTC near the center of the global financial system. “[W]e believe Bitcoin represents the digital future,” McGlone said after explaining that the dollar has advanced more than 300% against major peers since President Richard Nixon nixed the greenback’s gold peg in 1971. He further explained:

06/09/2021

Gold, bond portfolios are 'naked' without Bitcoin, Bloomberg strategist asserts

What is protecting an investment portfolio from potential stock market volatility? As per Bloomberg Intelligence's Mike McGlone, a merged exposure of Bitcoin (BTC), gold, and government bonds.

The senior commodity strategist, who sees BTC heading to $100,000, pitted derivatives in a new report representing the three safe-haven assets against the performance of the S&P 500 index, finding that the trio has been outperforming the benchmark Wall Street index at least since the start of 2020.

The Bitcoin-Gold-Bonds index took data from the Grayscale Bitcoin Trust (GBTC), SPDR Gold Shares (GLD) and iShares 20+ T- Bond ETF (TLT). The three funds enable investors to gain exposure in the market without requiring to hold/own the physical asset.

Bitcoin more profitable than gold and bonds

McGlone noted that Bitcoin did some heavy lifting in making investors' risk-off strategy successful, adding that their portfolios "appear increasingly naked" without the flagship cryptocurrency even if they remain exposed to gold and bonds.

The statement took cues from the performance of Bitcoin, gold, and the 10-year US Treasury yield against the prospect of rising quantitative easing and debt-to-GDP levels. Since March 2020, Bitcoin has risen almost 1,190%, which comes to be extensively better than spot gold's 25.93% spike.

Meanwhile, the U.S. 10-year bond yield has jumped from its record low of 0.33% to 1.326% in the same period.

However, despite a healthy spike, the returns on the benchmark government bond have come to be lower than the core U.S. inflation of 5.4%, suggesting that investors who hold bonds as safety against risky equities are making an inflation-adjusted loss.

20/05/2018