With the U.S stock market experiencing a lot of uncertainty, Bitcoin and other cryptocurrencies have been behaving similarly. The number of Bitcoin addresses held by whales (large holders) has recently reached a three-year low.
Bloomberg’s senior commodity strategist Mike McGlone believes that Bitcoin may be entering a stage of unstoppable growth. Mr. McGlone argues that the current price of oil ($84 per barrel) is similar to the price seen in October 2007. He believes that Bitcoin has an “appreciation advantage” because it didn’t exist 15 years ago. The latest Bloomberg report shows that there is an interesting trend happening.
McGlone said:”The fact that the benchmark crypto index hasn’t dropped with the latest round of rate-hike expectations may also signal that the Federal Reserve is nearing the end of its rate-hiking cycle. A potential catalyst for central banks to curtail tightening (i.e. raise interest rates) is for markets, such as stocks and commodities, to do it for them. This may favor Bitcoin, which is not subject to central bank control.”
Bloomberg strategist Mike McGlone believes that BTC’s diminishing supply could have a major impact on the global economy. Therefore, he believes that the price should continue to rise over time unless something unusual reverses demand and BTC adoption rates. Mr. McGlone said that he was also very happy with the way things had turned out.
“Bitcoin may be entering an inexorable phase of its migration into the mainstream, and at a relatively discounted price. FASBA’s recent decision that companies should use fair-value accounting for measuring crypto assets.“
On Tuesday, October 18, a large number of BTC coins were transferred out of exchanges. 40,000 bitcoins on Tuesday marked the largest outflow of bitcoins from exchanges in more than four months. Santiment, a provider of on-chain data, has observed that the number of coins held on exchanges has dwindled to 8.48%. If there is less of a particular currency available on an exchange, there is less chance that the value of that currency will drop in the future.
The social dominance of Bitcoin has had an impact on all of the cryptocurrencies, regardless of whether prices are going up or down. The green zones indicate when conversations about Bitcoin make up more than 20% of all asset discussions. Prices typically increase over time. If the stock market falls below 20%, it is considered a red zone. Prices usually go down in a red zone.
