- Bitcoin’s price performance lags behind the Nasdaq 100 futures index, according to Bloomberg’s commodity strategist Mike McGlone.
- After outperforming the Nasdaq 100 in July and August, Bitcoin experienced a 15% decline in the third quarter.
- Analysts predict that Bitcoin could trigger a general market slowdown due to high interest rates or other factors.
This article explores Bloomberg strategist Mike McGlone’s insights on Bitcoin’s recent performance and its potential implications for the broader market.
Bitcoin’s Performance: A Market Indicator?
Mike McGlone, a senior commodity strategist at Bloomberg, has suggested that Bitcoin’s price movement in the third quarter could be an indicator of what’s to come in the stock market. This comes after the Nasdaq 100 futures index outperformed Bitcoin in both July and August.
Insights from Bloomberg’s Analyst
In a recent analysis shared by Bloomberg Intelligence on September 5, McGlone questioned, “Is one of the best-performing assets telling us something?” Notably, Bitcoin began to show relative weakness in the last two months after a 2% increase in its relative strength ratio against the Nasdaq 100 index over several months. By September 1, Bitcoin had fallen 15% in the third quarter.
McGlone explained that this is a significant difference considering Bitcoin’s history as one of the best-performing assets, and it could lead to one of two possible outcomes. He stated, “The stock market is following BTC’s weak price movement during a slowdown. Or Bitcoin continues to lose performance against the Nasdaq 100 at a unique moment for both markets.”
According to the analysis, they believe the most likely scenario is the former, where Bitcoin triggers a general slowdown that also affects the stock market. Given that BTC has historically thrived in a low-interest-rate environment, high interest rates could be the culprit. However, the commodity expert had already shared an analysis showing that the Bitcoin price chart resembles the stock market chart of the 1930s following the great crash of 1929, which could be a warning against a possible major slowdown for the leading cryptocurrency.
Bitcoin’s Price Target
Additionally, many Bitcoin analysts and enthusiasts expect the top-performing asset to repeat its price movement from the past cycle in relation to the event known as ‘Bitcoin halving.’ This event, which involves halving the block subsidy paid to Bitcoin miners through monetary expansion and reducing supply, is anticipated to push Bitcoin’s price higher.
Analysts estimate that with approximately 19.48 million tokens in circulating supply, if Bitcoin reaches its all-time high market value, the value of one BTC could be close to $66,838. This represents a potential increase of 160% from Bitcoin’s current price of $25,747 at the time of writing. Despite the majority of positive expectations, there are a few analysts who warn of a possible change in Bitcoin’s performance during the halving.
Conclusion
In conclusion, Bitcoin’s recent performance could be a precursor to broader market movements. Whether this will result in a general market slowdown or a unique moment of performance loss for Bitcoin against the Nasdaq 100 remains to be seen. As always, investors are advised to keep a close eye on market trends and make informed decisions.
