Interestingly, commodity strategist at Bloomberg Intelligence Mike McGlone has suggested that Bitcoin has an ‘appreciation advantage’ signaling an imminent maturation stage, he said in a tweet on October 19. According to McGlone, the possibility of maturation stands out compared to products like crude oil, which attained the current price of $87 per barrel in 2017 before Bitcoin came into existence. As per the Bloomberg Intelligence analysis, the Bitcoin maturation stage is highlighted by the asset’s 2022 Q4 price movement. Notably, the analysis indicates that despite the recent Federal Reserve interest hike, Bitcoin’s volatility has reduced, showing signs of bottoming.
Bitcoin’s maturity already playing out
As previously reported by Finbold, Bitcoin volatility has reduced in recent months beating traditional asset classes like the Dow Jones index. Additionally, the analysis suggested that Bitcoin’s status as a risk-off asset might be playing out in the year’s second half, with the flagship cryptocurrency likely transitioning to emulate assets like gold. Notably, as reported by Finbold, McGlone had projected that after correction in 2022 H1, Bitcoin would likely rally in the last six months of the year on the road toward a high of $100,000.
Bitcoin valuation compared with traditional assets
Furthermore, despite a massive correction in 2022, Bitcoin still commands a significant market capitalization compared to mainstream stocks. A Finbold report on October 18 indicated that Bitcoin, with a market carpet of $374.78 billion, ranked higher than JPMorgan’s (NYSE: JPM), $349.31 billion, and Bank of America’s (NYSE: BAC) at $278.82 billion. At some point, Bitcoin ranked among the top ten most valuable assets globally based on market capitalization when it peaked in late 2021 at above $1 trillion. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
