Bitcoin showed enormous promise on October 4th and 5th by reflecting a 5% profit and shattering the $20,00 hindrance.
According to Senior commodity strategist at Bloomberg Intelligence, Mike McGlone, October 2022 can be the most rewarding month for Bitcoin since 2014. The mean profits derived for the month stand at 20 percent, with commodities slowly seeming to reach their highest point. Bitcoin showed enormous promise on October 4th and 5th by reflecting a 5% profit and shattering the $20,00 hindrance. The move also liquidated $75 million worth of leverage short (bear) positions and allowed some traders to estimate a possible rally to $28k. While the increased interest rates internationally are pushing the pressure on assets backward, Bitcoin is raising investment as compared to other commodities and tech stocks like Tesla.
According to McGlone, when the gloom over the crypto marketplace is eventually lifted, investors will witness Bitcoin, Ethereum, and Bloomberg Galaxy Crypto Index beat all other major tokens.
McGlone also acknowledges Bitcoin’s least volatility against the Bloomberg Commodity Index, which follows the price movements of international commodities like gold and crude oil, indicating that with context to the past, Bitcoin’s instability is most likely to recover in comparison to other commodities with crypto’s future ascent.
McGlone also pointed out that the second half of 2022 could witness Bitcoin’s transition toward entering the risk-free asset market. This shall follow minimized volatility all through September with a possible peak in commodity prices.
Historically, Bitcoin has been very frequently associated with tech stocks, with its instability leading to a risky asset that traders are most probably going to sell in an ecosystem where investors are seeking reduced risks.
Kaiko Research data revealed on October 3rd backs the idea that Bitcoin could be migrating to a more stable cryptocurrency, and could be called ‘digital gold’. While the price movements in crypto markets are better than in conventional markets, the trade volumes have surged to all-time highs following Kucoin‘s implementation of a series of 5th-anniversary contests.
A correlation of +1 between the conventional and crypto markets means that the two distinct assets are synonymous, resulting in a ten percent increase in Bitcoin for a ten percent raise in the price of gold.
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