Bloomberg Intelligence senior commodity strategist Mike McGlone thinks Bitcoin’s (BTC) relationship to commodities could be indicating the top crypto asset is on its way to a price recovery.
McGlone tells his 52,900 Twitter followers that Bitcoin is one of the most discounted major asset classes.
“The lowest-ever crypto volatility vs. the Bloomberg Commodity Index (BCOM) may portend a resumption of Bitcoin’s propensity to outperform. Our graphic showing the elongated upward trajectory of the crypto’s price vs. the BCOM is typical compared with most assets.
But what’s unique relative to commodities is the 260-day volatility of the crypto dropping to new lows. If history is a guide, Bitcoin volatility is more likely to recover vs. commodities when the crypto heads towards new highs.”
BTC is trading at $19,161 at time of writing. The top-ranked crypto asset by market cap is down a little over 1% in the past 24 hours.
McGlone noted earlier this week that Bitcoin recently traded at the steepest discount since the computation of the flagship crypto asset’s 200-week moving average began.
“The steepest Bitcoin discount on September 20th since its 200-week moving average could be calculated shows the extremity of the crypto crash and risk vs. reward for shorts vs. potential resumption of the elongated upward trajectory.”
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