Bitcoin At An “Unstoppable Maturation Stage” Says Bloomberg Analyst
With the U.S equity markets currently in a state of uncertainty, Bitcoin and other digital assets are following suit with similar trends. An interesting observation is that the number of ‘Bitcoin whales’ (addresses holding large amounts of BTC) have reached a three-year low.
However, Bloomberg’s senior commodity strategist Mike McGlone believes that Bitcoin could be entering an unstoppable maturation stage. Mr. McGlone compares the current crude price of $84 per barrel last seen in October 2007 to the cryptocurrency. He addsthat since Bitcoin didn’t exist 15 years ago, it has an “appreciation advantage.” The latest Bloomberg report shows:
The crypto benchmark index not dropping with the recent rate-hike expectations could signal that the Fed is nearing its end game. A top potential catalyst for central banks slowing down tightening is if markets, like stocks and commodities, do it instead–which might favor Bitcoin.
In addition, Bloomberg strategist Mike McGlone believes that BTC’s diminishing supply could be unprecedented on a global scale. He added that unless something unusual occurs to reverse the demand and BTC adoption rate, prices should continue to rise over time. Mr. McGlone also said:
Bitcoin may be transitioning into the mainstream, and at a relatively cheap price. FASBA’s recent decision that companies should use fair-value accounting for measuring crypto assets could signal this shift.
A large number of BTC holders moved their coins off exchanges on Tuesday, October 18. With 40,000 Bitcoins this was the largest outflow in over four months. On-chain data provider Santiment noted: “The supply of coins on exchanges decreasing reduces chances of a future sell-off”.
BTC’s social dominance is turning red, which gives a bearish signal for the BTC price. The Santiment report notes:
The social dominate of Bitcoin has played a role in the movement of prices for ALL cryptocurrency. Green zones indicate when conversations related to $BTC make up more than 20% of asset discussion. Generally, during these time periods, prices will increase. Red zones are below 20%, and during those times, prices generally fall.