Bitcoin poised to outperform the Nasdaq 100 says Bloomberg

By Raffaele Redi

“BTC is poised to come out ahead of what may be an overdue mean reversion for risk assets,” Bloomberg.

Silver bitcoin symbol on the side of a glass-fronted city building                                 
The current macroeconomic landscape could favour the raise of the lead crypto – Photo: Shutterstock

Bitcoin would be set to outperform the Nasdaq 100 in 2022 according to Bloomberg. The lead crypto typically trades at about three times the volatility of the Nasdaq, but it’s about unchanged while the index recorded an 8% slide to 4 April.

According to the financial publication, the Ukraine war and a possible consequent economic crisis or recession for NATO countries, triggered by sanctions on Russia, could strengthen the position of the lead crypto with more investors tempted to bet on digital gold as a commodity.

“Risk assets were ground down some in 1Q, and cryptos are among the most exposed. However, the war and disruptions in markets like nickel are adding to the narrative that Bitcoin is the most fluid global trading vehicle in history and well on its way to becoming digital collateral,” stated the latest Bloomberg report on cryptos.

“Every day that the Federal Reserve wakes up to rising asset prices, our take is it becomes more concerned about related inflation and inclined to do something about it. Bitcoin is poised to come out ahead of what may be an overdue mean reversion for risk assets,” added the report.

Microstrategy accumulating

The report came as the US business intelligence provider MicroStrategy acquired around BTC4,167 for approximately $190.5m (£146m) in cash, with the purchase corroborating Bloomberg analysts’ theory and pushing MicroStrategy’s BTC treasure to around $4bn.

“Fresh new capital entering the market, mitigating the risk of a strong correction,” commented Glassnode experts.

In particular, as the company reported, MicroStrategy Incorporated, through its wholly owned subsidiary, MacroStrategy LLC, acquired approximately BTC 4,167 for around $190.5m in cash, at an average price of approximately $45,714 per bitcoin – inclusive of fees and expenses – during the period between 15 February – 4 April 2022.

As of 4 April 2022, MicroStrategy, together with its subsidiaries, held an aggregate of approximately BTC 129,218, which were acquired at an aggregate purchase price of approximately $3.97bn and an average purchase price of approximately $30,700 per bitcoin, inclusive of fees and expenses, with MicroStrategy holding around BTC115,110 of the bitcoins.

Bitcoin mining, another sign of strength

Another sign of strength for the leading crypto could come from the mining sector, according to Delphi Digital analysts, as BTC mining difficulty hit new highs at 120 ZH/s. As competition grows in the mining sector while less than two million BTC remain to mine, the lead crypto becomes in fact more valuable.

“The level is the toughest it has ever been to mine a Bitcoin. This comes as Bitcoin supply crossed 19M, making there only 2M Bitcoin remaining left to mine. We can expect fiercer competition as every bitcoin becomes more valuable,” said Delphi Digital experts.

Mining difficulty is defined as how hard it is for miners to mine a block of transactions into a blockchain. Bitcoin’s mining difficulty adjusts every 2,016 blocks, or 14 days, and is based on the hash power that competes for mining rewards on the network.

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