Bitcoin at $19,000 may be more tempting to investors than the S&P 500 at $3,600, according to expert
The stock market and Bitcoin (BTC) have followed similar trends this year, but their current divergence raises the possibility of more stable crypto price levels, BTC’s usage as a store of value, and a superior investment option.
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, shared his perspective on the stocks vs Bitcoin discussion on Twitter on October 20. He seems to have a similar line of thinking.
McGlone says that Bitcoin is establishing a foundation at roughly $19,000 while the S&P 500 continues to lose value, presenting the issue of what will halt the decrease in stock prices, stating that “Bitcoin at $19,000 Could Gain Advantage vs. 3,600 S&P 500.”
He declared: “the cryptocurrency has been stabilising just above this level since trading there for the first time in June. Like other risky assets, it is susceptible to stock market movements, especially if the market continues to fall.
Although it is impossible to anticipate when the stock market will stop falling, the Federal Reserve’s (Fed) stance on interest rate rises continues to Favour more substantial increases, which should keep stock market values down.
In this regard, McGlone debated: “Additional deflation in the S&P 500 may be the primary factor slowing the rate of central bank tightening as the global economy approaches recession. In the wake of the largest pump-and-dump in US money supply history, an extended deflationary era makes logical, which may benefit Bitcoin as a store of wealth.”
If equities continue to decline and the BTC price stays constant, investors may have found a safe haven if the BTC price continues consistently. The cryptocurrency market may provide a haven from declining stock, gold, and other asset values.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.