Senior commodity strategist at Bloomberg Intelligence, Mike McGlone, said October has traditionally been one of the best month for Bitcoin (BTC) since 2014, averaging good points of about 20% for the month, and that commodities showing to peak may suggest that Bitcoin has reached its backside.

In an Oct. 5 Bloomberg Crypto Outlook report, McGlonesays whereas the rise of rates of interest globally is placing downwards stress on most property, Bitcoin is gaining the higher hand in comparison with commodities and tech shares like Tesla, with the report noting:

“When the ebbing financial tide turns, we see the propensity resuming for Bitcoin, Ethereum, and the Bloomberg Galaxy Crypto Index to outperform most main property.”

McGlone notes that Bitcoin has its lowest ever volatility in opposition to the Bloomberg Commodity Index, which tracks the value actions of world commodities akin to gold and crude oil, and means that traditionally Bitcoin volatility is extra prone to recuperate as in comparison with commodities when the crypto heads to new highs.

McGlone advised the second half of 2022 may see Bitcoin “shift towards changing into a risk-off asset, like gold and US Treasury’s,” following low volatility all through September and a possible peak in commodity costs.

Up to now, Bitcoin has been extremely correlated with tech shares, with its volatility making it a dangerous asset that merchants are prone to promote in an atmosphere the place traders wish to cut back threat.

5 explanation why Bitcoin may very well be a greater long-term funding than gold

Kaiko Analysis information launched on Oct. 4 supports the notion that Bitcoin could also be transitioning to performing extra like “digital gold,” with Bitcoin’s correlation to gold hitting its highest stage in additional than a 12 months at +0.4 following a strengthening of america greenback as rates of interest rise.

A correlation of +1.0 signifies that the motion between two totally different property is synonymous, for instance a ten% improve in gold can be matched by a ten% improve in Bitcoin ought to the 2 property have a correlation of +1.0.