Senior Commodity Strategist at Bloomberg Intelligence, Mike McGlone, seems to follow a similar train of thought as he took to Twitter on October 20 to share his outlook on the equities vs. Bitcoin debate. McGlone argues that Bitcoin is building a base of around $19,000 while the S&P 500 continues to decline in value, posing a question of what will stop the drop in stock prices noting, “Bitcoin at $19,000 Could Gain Upper Hand vs. 3,600 S&P 500..” According to McGlone, the price of Bitcoin has never been lower than its 200-week moving average, but the present price is four times lower than it was at the end of the first quarter of 2020, which may be an indication of an ongoing bull market. He stated:
What will stop equities from dropping?
While it is difficult to predict when the stock market will stop dropping, the news coming from the Federal Reserve (Fed) regarding interest rates is still leaning towards more large hikes, which should keep the stock market valuations depressed. To that end, McGlone mused: It may be, then, that a place to hide has been finally revealed for battered investors if stocks continue falling and the BTC price remains stable. Crypto markets may offer refuge from falling stock, gold, and other asset prices. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
