With the U.S equity markets gripped in uncertainty, Bitcoin and the broader crypto market have been showing similar moves. Interestingly, the Bitcoin whale addresses supply has also recently touched a three-year low.
However, Bloomberg’s senior commodity strategist Mike McGlone believes that Bitcoin could be entering an unstoppable maturation stage. Mr. McGlone draws an interesting comparison with the current crude price of $84 per barrel last seen in October 2007. He adds the fact that Bitcoin didn’t exist 15 years back gives it an “appreciation advantage”. Interestingly, the latest Bloomberg report shows:
The fact that the benchmark crypto index hasn’t dropped with the latest round of rate-hike expectations may also signal a Fed end-game on the horizon. A top potential catalyst for central banks to curtail tightening is for markets, notably stocks and commodities, to do it for them, which may favor Bitcoin.
Bitcoin – Declining Supply and Rising Demand
Bloomberg strategist Mike McGlone added that BTC’s diminishing supply could be unprecedented on a global scale. Thus, he believes that the prices should continue to rise over time unless something unusual reverse the demand and BTC adoption rate. Mr. McGlone also said:
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, BTC witnessed a massive surge in the coins moving off exchanges. At 40,000 Bitcoins, Tuesday marked the largest Bitcoin outflow from exchanges in over four months. On-chain data provider Santiment noted: “The supply of coins on exchanges is down to 8.48%. As exchange supply decreases, it de-risks chances of a future sell-off”.
However, BTC’s social dominance has turned in the red which gives a bearish signal for the BTC price. The Santiment report notes:
Bitcoin’s social dominance has factored in for ALL of #crypto, and whether prices move up or down. Green zones show when convos related to $BTC exceed 20% of asset discussions. Prices generally climb. Red zones are below 20%, and prices generally fall.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.