BTC to outperform 'most major assets' in H2 2022 — Bloomberg analyst

Senior commodity strategist astatine Bloomberg Intelligence, Mike McGlone, stated October has historically been the champion period for Bitcoin (BTC) since 2014, averaging gains of astir 20% for the month, and that commodities appearing to highest could connote that Bitcoin has reached its bottom.

In an Oct. 5 Bloomberg Crypto Outlook report, McGlone says portion the emergence of involvement rates globally is putting downwards unit connected astir assets, Bitcoin is gaining the precocious manus erstwhile compared to commodities and tech stocks similar Tesla, with the study noting:

“When the ebbing economical tide turns, we spot the propensity resuming for Bitcoin, Ethereum, and the Bloomberg Galaxy Crypto Index to outperform astir large assets.”

McGlone notes that Bitcoin has its lowest ever volatility against the Bloomberg Commodity Index (BCOM), which tracks the terms movements of planetary commodities specified arsenic golden and crude oil, and suggests that historically Bitcoin volatility is much apt to retrieve arsenic compared to commodities erstwhile the crypto heads to caller highs.

Bitcoin vs BCOM and Bitcoin 260 time volatility vs BCOM 260 time volatility. Source: Bloomberg Crypto Outlook

McGlone suggested the 2nd fractional of 2022 could spot Bitcoin (BTC) “shift toward becoming a risk-off asset, similar golden and US Treasury's” pursuing debased volatility passim September and a imaginable highest successful commodity prices.

In the past Bitcoin has been highly correlated with tech stocks, with its volatility making it a risky plus which traders are apt to merchantability successful an situation wherever investors are looking to trim risk.

Related: 5 reasons wherefore Bitcoin could beryllium a amended semipermanent concern than gold

Kaiko Research data released connected Oct. 4 supports the conception that Bitcoin whitethorn beryllium transitioning to acting much similar “digital gold,” with Bitcoin’s correlation to golden hitting its highest level successful much than a twelvemonth astatine +0.4 pursuing a strengthening of the U.S. dollar arsenic involvement rates rise.

Bitcoin’s correlation with golden implicit the past 12 months. Source: Kaiko

A correlation of +1.0 means that the question betwixt 2 antithetic assets is synonymous, for illustration a 10% summation successful golden would beryllium matched by a 10% summation successful Bitcoin should the 2 assets person a correlation of +1.0.