The resilience of Bitcoin's price in the face of interest rate hikes from the Federal Reserve could mean that the asset has reached a stage of maturity.
In an article published in his personal account of LinkedIn, Mike McGlone, senior commodities strategist at Bloomberg intelligence, suggests that Bitcoin could have reached a stage of “unstoppable maturity” as an emerging technology. This is a stage that great technologies, such as computing or the Internet, have gone through.
McGlone explains that Bitcoin could become a “leading market indicator", since the current price resilience in the face of the Federal Reserve's constant rate hikes, they could signal the end of the current policy of increases.
Bitcoin as a reference of value
McGlone compares the current price of a barrel of crude oil with that of 2007, when Bitcoin did not yet exist. The strategist explains that Bitcoin has a big upside in appreciation as a nascent technology, since it has scaled quickly (despite the reluctance of much of the financial industry and governments).
Global digitalization and the need for new, more transparent, reliable and efficient financial and digital technologies mean that Bitcoin has rapidly gained value as a unique asset and decentralized global collateral, which is not tied to the whims of a central entity.
In this sense, McGlone agrees with the usual argument of great Bitcoin defenders, such as Michael Saylor, who They compare cryptocurrency with gold, as a scarce value, but also free from the centralized management of a single entity or nation state.
Bitcoin volatility
On the other hand, McGlone points out the volatility that Bitcoin has experienced in recent months and that, in the last year, BTC has lost almost 70% of its market capitalization.
However, for the Bloomberg strategist this volatility is normal, since the cryptocurrency remains linked to the global macroeconomic market and has faced a particularly aggressive period.
Despite everything, Bitcoin remains the best performing asset of the last decade, with a very high market capitalization higher than that of large companies like Meta or JP Morgan. Furthermore, the risk/reward ratio remains favorable for Bitcoin, even in the current situation.
Bitcoin's future
The Bloomberg strategist also believes that, as regulation (especially in the US) becomes clearer and widespread adoption begins, with institutions and consumers entering en masse, Bitcoin prices will recover and will become one of the main assets.
In the report shared by McGlone, Bloomberg places Bitcoin as a indicative of the end of the Federal Reserve's fight against inflation. In this sense, while other assets plummeted due to rising interest rates, Bitcoin has continued to oscillate vertically within the $19.000 level.
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