Although Bitcoin (BTC) is still far from the all-time high it reached in November 2021, the asset, according to some, is showing divergent strength, especially when compared to the stock market.
Bloomberg Senior Commodities Strategist Mike McGlone had previously highlighted that markets are long overdue for a fairly significant correction, particularly in terms of equities, but recently observed on March 4 that Bitcoin “shows divergent strength”.
Furthermore, McGlone said that “Digital Gold” is poised to triumph, noting that Bitcoin will be subject to deflationary pressures after the 2021 peaks of the Nasdaq 100.
The commodity strategist stated:
“Bitcoin $40,000 or Nasdaq 14,000? Digital Gold Set to Prevail – Bitcoin faces deflationary forces after 2021 excesses, but the cryptocurrency shows divergent strength. With losses in 2002 less than half the losses of the Nasdaq 100, Bitcoin could be maturing towards global digital collateral.”
Buying Opportunity for Bitcoin
It is worth noting that on February 24, following Russia’s invasion of Ukraine, which resulted in a brief drop in Bitcoin’s value, McGlone noted that while there are downside risks present, the drop provided a “very good buying opportunity” for the long term. deadline. investors who were sitting on their money.
“I don’t think Bitcoin goes much below $30,000. It is holding good resistance around $40,000. I think it will ultimately be a very good buying opportunity for Bitcoin for long-term traders. It will be seen in history as a defining moment,” he said.
Since Bitcoin dropped from $39,000 to below $35,000 late last week, the top digital asset has rebounded to briefly rally to $45,000 on March 2.
BTC is currently trading at $39,084.85, down 6.25% over the past 24 hours and up 0.61% from the previous week, according to statistics from CoinMarketCap.
Bitcoin has a total market cap of $741.6 billion and a market dominance of 42.2%.
Ultimately, as a result of the geopolitical tensions surrounding the invasion of Russia, Bitcoin supply activity has reached its highest level in nearly two years, which may be one of the reasons McGlone called it a global digital collateral.