Senior Bloomberg strategist Mike McGlone says that Bitcoin (BTC) is now susceptible to deep corrections after the huge rallies it has experienced during its lifetime.
In a new thread, McGlone tells his 70,500 followers on X that the top crypto asset by market cap’s role is shifting into that of a speculative, hype-driven commodity, making it prone to sharp pullbacks.
-->Furthermore, McGlone says that the sheer number of digital assets listed on the market is diminishing the crypto king’s value by undermining its perception of having a capped maximum supply.
“Digital gold or commodity? Bitcoin vs. 21 million offshoots – Bitcoin’s role may be shifting toward that of a speculative, hype-driven commodity, leaving it prone to sharp pullbacks after outsized rallies and potentially boosting the appeal of gold as a haven.
CoinMarketCap’s listing of 21 million cryptos highlights the unchecked proliferation of numbers on a screen mostly tracking holdings with no underlying assets, undermining Bitcoin’s perception of limited supply.”
Source: Mike McGlone /XMcGlone goes on to note that commodities tend to see massive corrections after periods of large growth, a phenomenon that could apply to BTC.
“Bitcoin at $10,000? Commodity-like autocorrelation – commodities often retreat after outsized gains, a pattern that may apply to Bitcoin.
Initially hyped as digital gold with supply capped at 21 million vs. increasing demand and adoption, the price of the first-born cryptocurrency seemed destined to rise, and it did. But what was one digital asset in 2009 is now about 21 million listings on CoinMarketCap.”
Source: Mike McGlone /XBitcoin is trading for $114,497 at time of writing, a fractional increase during the last 24 hours.
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