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Bitcoin’s Relationship to Commodities Could Hint at a Price Recovery Says Bloomberg Analyst

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According to Bloomberg Intelligence senior commodity strategist Mike McGlone, Bitcoin’s relationship to commodities may indicate that the top crypto asset is on its way to a price recovery.

According to McGlone’s 52,900 Twitter followers, Bitcoin is one of the most undervalued major asset classes.

“The lowest-ever crypto volatility vs. the Bloomberg Commodity Index (BCOM) may portend a resumption of Bitcoin’s propensity to outperform. Our graphic showing the elongated upward trajectory of the crypto’s price vs. the BCOM is typical compared with most assets. But what’s unique relative to commodities is the 260-day volatility of the crypto dropping to new lows. If history is a guide, Bitcoin volatility is more likely to recover vs. commodities when the crypto heads towards new highs.”

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At the time of writing, BTC is worth $19,161. The top-ranked crypto asset by market cap has fallen slightly more than 1% in the last 24 hours.

McGlone pointed out earlier this week that Bitcoin recently experienced its biggest discount since the 200-week moving average calculation for the leading cryptocurrency started.

“The steepest Bitcoin discount on September 20th since its 200-week moving average could be calculated shows the extremity of the crypto crash and risk vs. reward for shorts vs. potential resumption of the elongated upward trajectory.”