Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, wrote a tweet in which he explains that Bitcoin could outperform gold in the following months and years. Bitcoin has been relatively stable since the war started and the price of the largest cryptocurrency in the world could continue in this way throughout 2022.
Bitcoin Could Continue to Outperform Gold
According to Mike McGlone, it is improbable for Bitcoin to stop outperforming gold. In a tweet he wrote on March 17, he talked about the Federal Reserve (FED), about Bitcoin, gold and the stock market. He said that inflation and war could be marking another milestone in Bitcoin’s maturation.
Additionally, McGlone said that it is unlikely for Bitcoin to stop outperforming gold and the stock market. Let’s not forget that the FED attempts another rate-hike cycle that could push asset prices lower and strengthen the US dollar. Nonetheless, this remains to be seen, as Bitcoin has also been traded very close to traditional financial markets in recent months.
It is worth noting that the FED is starting a new period of interest rate hikes that were paused for around three years. This shows that there could be an impact on traditional financial markets and other assets. Moreover, the war in Ukraine is definitely having a strong impact on inflation. Products from Russia, Ukraine and Belarus are currently more difficult to get access to.
Supply chain issues are also getting worse. While Russia and Ukraine are now almost out of the worldwide supply chain, China is also having issues with Covid cases in some important cities. In the long term, this could make it more difficult for people to get access to some products such as chips, computers, and some raw materials and commodities.
Bitcoin has been growing as an alternative solution to traditional payment methods. Nowadays that it became very difficult to Ukrainian people to get access to financial solutions, Bitcoin is becoming a clear alternative.
Meanwhile, Bitcoin became a very important financial tool to help Ukrainians in this conflict. People have donated over $50 million using digital currencies. These funds can be used to pay for new military materials and help local communities that have been affected by the conflict.
As Mike McGlone says, it might be possible for Bitcoin to continue to outperform gold and other assets in the next few months. However, it might take some time for Bitcoin to be able to break again a new all-time high (currently at $70,000).