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.
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McGlone tells his 52,900 Twitter followers that Bitcoin is one of the most discounted major asset classes.
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“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.
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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.”
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Source: Mike McGlone/Twitter
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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.
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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.
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“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.”
