According to analysts, BTC will surpass the “most important assets” in H2 2022. Global interest rate rises push down asset values, but Bitcoin is starting to outperform commodities and tech shares.
The best month for Bitcoin (BTC) was October, according to Mike McGlone, a senior commodities analyst at Bloomberg Intelligence, with almost 20% on average gains for the month. Additionally, he said that the topping of commodity prices might signify that Bitcoin has reached its bottom.
According to McGlone’s Crypto Outlook analysis from October 5, although rising interest rates globally push most assets lower, Bitcoin is outpacing commodities and tech shares like Tesla. The study observes that when the ebbing economic tide shifts, Bitcoin, Ethereum, and the Galaxy Crypto Index tend to outdo most big assets.
Will BTC Disappoint Expectations?
The BCI tracks the price of commodities such as gold and crude oil. According to it, bitcoin’s volatility is at an all-time low. When crypto is going for new highs, Bitcoin volatility is more likely to recover than that of commodities.
Following minimal volatility throughout September and a likely peak in commodity prices, McGlone predicted that Bitcoin “transition toward being a risk-off asset, like gold and US Treasury’s” in the second half of 2022. Its volatility makes it a hazardous asset that traders want to sell in a setting where investors are eager to reduce risk. However, Bitcoin has historically had a strong correlation with tech stocks.
The idea that Bitcoin may be changing to behave more like “digital gold” is supported by Kaiko Research data, which was released on October 4. Following a strengthening of the US dollar as interest rates increased, Bitcoin’s correlation to gold reached its highest level in more than a year at +0.4.