Bloomberg News: The recently published June 2021 issue of the Bloomberg research report “Bloomberg Commodity Outlook,” written by Bloomberg Intelligence Senior Commodity Strategist Mike McGlone, is quite optimistic about the outlook for Bitcoin and gold.
Bitcoin and gold report drew attention
Here are some key points from this report:
The “mainstream migration trend” looks strong, as evidenced by the popularity of several Bitcoin ETFs in Canada and the growing list of Bitcoin ETF proposals pending SEC approval.
The steady decline in US 30-Year Treasury Bonds (from 2,415 percent on May 12 to 1.89% on July 8) means there is less competition for the storage of valuable assets like gold and Bitcoin.
In the first half of 2021, the S&P 500 and Bitcoin rose by the same amount. As for the second half of 2021, “some recession in the equity wave” could pose a short-term risk to Bitcoin. For now, Bitcoin looks “cold” and stocks “very hot”. It shows more upside potential for bitcoin in the second half of 2021 than stocks.
Crypto pressure in China, the US Securities and Exchange Commission (SEC) still does not approve of a Bitcoin ETF, and ESG’s concerns about the power consumption of Bitcoin mining are three “short-term price winds” that could turn into “long-term tailwinds”.
Bitcoin appears to be on track to “stabilize about 100 times an ounce of gold” (the price of an ounce of physical gold is currently around $1,800).
On July 2, McGlone said that regardless of whether we are in a bear market or a bull market, “selling Bitcoin on the first dips below its past 50-week moving average has proven to be a good way to lose money.”