Bloomberg Intelligence (BI) Senior Commodity Strategist Mike McGlone, Bloomberg’s research arm, made some reassuring words for BTC HODLers on Tuesday (September 22nd).
“On Friday, September 18, the three major US stock market indices closed the third week in a row.
Part of the recent poor performance of the US stock market is the gradual change in technology stocks (such as Amazon and Tesla) due to concerns about the valuation of some companies that have fueled the massive rally we have witnessed since March 23.
Another reason is that recent weeks saw little progress in Washington in reaching consensus on a new fiscal stimulus package to combat the economic impact of the COVID-19 outbreak.
As of today (as of September 22, 11:12 EDT or 15:12 UTC) Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are in negative territory with decline.
Of course, this risk-averse mood negatively impacts Bitcoin, which often tends to behave as a risky asset. As US stock prices have fallen in the past three weeks, the Bitcoin price has also fallen.
On September 1, the Bitcoin price reached an intraday high of $ 12,062. Bitcoin is currently trading around $ 10,447, which means the BTC price has dropped 13.39% since that high on September 1. ”
McGlone, who has shown a long-term rise in both gold and Bitcoin for those who think this latest correction in the bitcoin price is a serious cause for concern, says some reassuring words:
“Bitcoin is a striking fixed supply asset that, in our view, should be the primary beneficiary in a period of limited potential for further upward in stock and bond prices. The tightening of Bitcoin supply in response to the monetary easing is leaving demand and being adopted as the best price-outlook metrics. “