Despite a receding inflationary tide and a deflated stock market, bitcoin is ‘coming out on top.’


As the cryptocurrency market continues its gradual recovery from a bad run and struggles to maintain a market capitalization of more than $2 trillion, some analysts feel that crypto assets are ahead of other markets.

One of them is Bloomberg’s senior commodities analyst Mike McGlone, who discussed current financial and digital asset developments with Cassandra Leah of The Daily Dive on April 5.

McGlone, a firm believer in cryptocurrencies’ “divergent strength,’ demonstrated this strength in light of the present financial situation:

“What distinguishes crypto this year is that they are riding an ebbing wave of a declining stock market and the Federal Reserve combating inflation, [together with] practically all central banks in Western nations (…), and yet they are emerging ahead.”

He noted that, on a year-over-year basis, Bitcoin (BTC) remained about constant, while the Nasdaq fell roughly 8%. Nonetheless, he said, “Bitcoin trades at a threefold premium to the Nasdaq.”

Bloomberg’s commodities specialist reaffirmed his belief that cryptos were demonstrating differential strength and should continue to outperform. Additionally, he stated:

“The overall bigger danger is that the tide continues to recede, the Nasdaq and S&P 500 reach new lows in the near future, which is inevitable, and Bitcoin follows suit but emerges ahead.”

McGlone highlighted in early March that Bitcoin, in particular, was exhibiting diverging strength, particularly when contrasted to the stock market. As Finbold stated, he also claimed that it may be evolving into a ‘global digital collateral’, given that its 2020 losses were less than half of those of the Nasdaq 100.

McGlone feels his most recent statements were made in answer to the host’s inquiry on the impact of recent breaches such as Axie Infinity’s (AXS) on investors’ desire to join the cryptocurrency market.

He anticipates some criticism “from investors who are just getting their feet wet.” However, “it was not one of the more prominent ones – Bitcoin, Ethereum, or any of the crypto dollars.” According to him, it is one of the issues that must be addressed in order to strengthen the market.

Also Read: The incorporation of Bitcoin payments into Shopify raises legal concerns in the community

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