Bitcoin's rebate to highest hash rate since the start of 2020 – Mike McGlone
The senior commodities strategist is bullish on Bitcoin, revealing on October 18 that its relative reduction to the hash rate has reached low levels never seen since the first quarter of 2020.
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Mike McGlone, senior commodities strategist at Bloomberg Intelligence, said Bitcoin's (BTC) relative discount to its high hash rate in October - the largest since the first quarter of 2020 - could soon see Bitcoin regain "its propensity to outperform most assets".< /p>
In an October 19 Twitter post, the Bloomberg analyst suggested that Bitcoin's ever-increasing hash rate - a measure of a blockchain's processing power and security - relative to its levels of "risk/reward favorably" price. /p>
Many believe that in theory Bitcoin's hash rate should rise relative to its price.
McGlone pointed to a chart noting that Bitcoin's 10-day average hash rate in October is "roughly equivalent" to the level it should be around $70,000. However, the price is currently $19,500 as of October 18.
McGlone noted that such a large gap between price and hash rate was last seen during the "Q1 2020 slump" - a drop that preceded a meteoric rise that lasted until in 2020 and 2021.
McGlone has indicated that it is possible that we now see a "similar price base forming now".
Chart the hash rate and price of bitcoin. Source: Bloomberg IntelligenceThe Bloomberg analyst, known to be a perma bull, said high rates of rashes, along with demand, adoption and regulation surges mean that Bitcoin could be entering an “inexorable phase”. of its migration to the general public and at a relatively reduced price.”
In a separate Linkedin post, McGlone said that "it may only be a matter of time" before Bitcoin returns to its propensity to outperform most major assets, commenting:
"Return t...
The senior commodities strategist is bullish on Bitcoin, revealing on October 18 that its relative reduction to the hash rate has reached low levels never seen since the first quarter of 2020.
New
Mike McGlone, senior commodities strategist at Bloomberg Intelligence, said Bitcoin's (BTC) relative discount to its high hash rate in October - the largest since the first quarter of 2020 - could soon see Bitcoin regain "its propensity to outperform most assets".< /p>
In an October 19 Twitter post, the Bloomberg analyst suggested that Bitcoin's ever-increasing hash rate - a measure of a blockchain's processing power and security - relative to its levels of "risk/reward favorably" price. /p>
Many believe that in theory Bitcoin's hash rate should rise relative to its price.
McGlone pointed to a chart noting that Bitcoin's 10-day average hash rate in October is "roughly equivalent" to the level it should be around $70,000. However, the price is currently $19,500 as of October 18.
McGlone noted that such a large gap between price and hash rate was last seen during the "Q1 2020 slump" - a drop that preceded a meteoric rise that lasted until in 2020 and 2021.
McGlone has indicated that it is possible that we now see a "similar price base forming now".
Chart the hash rate and price of bitcoin. Source: Bloomberg IntelligenceThe Bloomberg analyst, known to be a perma bull, said high rates of rashes, along with demand, adoption and regulation surges mean that Bitcoin could be entering an “inexorable phase”. of its migration to the general public and at a relatively reduced price.”
In a separate Linkedin post, McGlone said that "it may only be a matter of time" before Bitcoin returns to its propensity to outperform most major assets, commenting:
"Return t...
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