Bloomberg Analyst Says Bitcoin Changing from Being Risk-On to “More Defensive Asset”

Bloomberg lately keeps surprising by its turnaround in favor of the crypto industry, which this business medium has not been favoring until recently. Its senior macro strategist Mike McGlone says that Bitcoin (BTCUSD) vastly outperforming gold may be indicative of a new supercycle for the king cryptocurrency.

The Bloomberg analyst explained to his 55,000 Twitter followers that one of Bitcoin’s key advantages over gold is its low and rising adoption plus dwindling permitted supply.

What’s even more appealing is that the strategist also suggested that Bitcoin may be in a transitional period between being a risk-on asset to a “more defensive investment against economic instability” and banking crises like the one occurring these days. He compared BTC against the KBW banking index, which tracks the leading banks and thrifts that are publicly traded in the US, and points out a growing divergent strength in favor of Bitcoin.

It’s worth mentioning that YTD Bitcoin experienced four panic episodes when investors suddenly fled to get the main cryptocurrency sold off. However, every time BTC was finding strong support at $20,000 level, which again and again triggered Bitcoin bulls’ buying.