{"id":276352,"date":"2021-06-16T20:35:15","date_gmt":"2021-06-16T17:35:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/diversification-into-bitcoin-a-prudent-move-says-bloomberg-strategist\/"},"modified":"2021-06-16T20:35:15","modified_gmt":"2021-06-16T17:35:15","slug":"diversification-into-bitcoin-a-prudent-move-says-bloomberg-strategist","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/diversification-into-bitcoin-a-prudent-move-says-bloomberg-strategist\/","title":{"rendered":"# Diversification into Bitcoin a \u2018prudent move,\u2019 says Bloomberg strategist"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a256f5f9a8d7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a256f5f9a8d7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/diversification-into-bitcoin-a-prudent-move-says-bloomberg-strategist\/#Money_printer_goes_brrr\" >Money printer goes brrr<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/diversification-into-bitcoin-a-prudent-move-says-bloomberg-strategist\/#Commodity_shock_ahead\" >Commodity shock ahead?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Diversification into Bitcoin a \u2018prudent move,\u2019 says Bloomberg strategist  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) price has retreated by more than 40% after topping out near $65,000 in mid-April. But that is not enough to derail the flagship cryptocurrency&#8217;s long-term bull trend, especially as global markets gr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>le with declining national currencies and the prospect of a commodity market crash.<\/p>\n<p>So believes Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, who said Wednesday that diversifying into store-of-value assets is a wise strategy against gloomy currency and commodity market outlooks.<\/p>\n<p>&#8220;There&#8217;s little risk of the dollar dropping in value vs. similarly depreciating currencies, which means that diversification into store-of-value assets like gold and Bitcoin is simply a prudent move, in our view,&#8221; he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mikemcglone11\/status\/1405112583636586500\">tweeted<\/a> Wednesday.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Money_printer_goes_brrr\"><\/span>Money printer goes brrr<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>McGlone&#8217;s bullish analogy took references from a recent spike in money injected into the U.S. and Eurozone economies. The U.S. Money Supply M2, a measure\u00a0of the money supply<em> <\/em>that includes cash and checking deposits (M1) and near money, reached $20.256 trillion on May 3, 2021, from $15.384 trillion on Feb. 10, 2020.<\/p>\n<p>A surplus liquidity injection into the U.S. economy left the dollar weaker against top foreign currencies. As a result, the U.S. dollar index (DXY) fell by almost 11.22% from its mid-March 2020 high of 101.947 to 90.5 as of June 16.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/93849456-a291-43a9-8c48-679d906520ed.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>U.S. recessions are shaded; the most recent end date is undecided.\u00a0Source: Board of Governors of the Federal Reserve System<\/em><\/figcaption><\/figure>\n<p>Meanwhile, the Eurozone Money Supply M2, the money supply in the European Union area, surged from \u20ac5.6 trillion in February 2020 to over \u20ac14 trillion in March 2021<\/p>\n<p>However, Euro rallied against the U.S. dollar despite its oversupplied status, with Jordan Rochester, a Group-of-10 foreign exchange analyst at Nomura International, noting that the European government&#8217;s attuned response to the coronavirus pandemic <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fortune.com\/2020\/08\/11\/king-euro-common-currency-rally-dollar-weakness\/\" data-amp=\"https:\/\/fortune-com.cdn.ampproject.org\/c\/s\/fortune.com\/2020\/08\/11\/king-euro-common-currency-rally-dollar-weakness\/amp\/\">drifted capital out of the U.S. markets to enter the eurozone economy<\/a>.<\/p>\n<p>On the other hand, Bitcoin logged supersonic price rallies against the dollar and euro on promises to shield investors from higher inflation. While the BTC\/USD exchange rate jumped from $3,858 in March 2020 to a little over $40,000 in June 2021, the BTC\/EUR exchange rate spiked from \u20ac3,363 to around \u20ac32,000 within the same period.<\/p>\n<p>Recent consumer price index reports in the U.S. showed that the inflation rate reached 5% in May 2021, the highest since 1992. In Europe, the headline rate for price growth reached 2%,\u00a0topping the European Central Bank&#8217;s (ECB) target. <\/p>\n<p>Meanwhile, ECB chief Christina Legarde <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/6c5c3c9c-e9fb-48a3-97a4-b920f38c5f25\" data-amp=\"https:\/\/amp-ft-com.cdn.ampproject.org\/c\/s\/amp.ft.com\/content\/6c5c3c9c-e9fb-48a3-97a4-b920f38c5f25\">said<\/a> that they would continue purchasing bonds, fearing tapering of any kind would derail the eurozone recovery.<\/p>\n<p><strong><em>Related:\u00a0Looming \u2018death cross\u2019 may put Bitcoin bull run in danger ahead of Fed meeting<\/em><\/strong><\/p>\n<p>Federal Reserve officials also expect to sideline inflationary pressure as they conclude their two-day Federal Open Market Committee policy meeting on Wednesday. Earlier, the U.S. central bank said that higher CPI in April and May are &#8220;transitory in nature.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Many are worried the fed&#8217;s current policies are setting us up for (and we are already seeing) high inflation. Inflation is bullish asset prices, b\/c the dollar is worth less. Even if the asset is worth the same, the dollar it&#8217;s being marked against is worth less. BTC number go up<\/p>\n<p>\u2014 Jonny Moe (@JonnyMoeTrades) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JonnyMoeTrades\/status\/1405145499863195648?ref_src=twsrc%5Etfw\">June 16, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commodity_shock_ahead\"><\/span>Commodity shock ahead?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors deeming hedging assets like Bitcoin as risky chose to stay hedged in relatively less volatile areas of markets such as commodities. Copper, the bellwether for macroeconomic health, surged 67% as investors looked for havens against falling currencies. Aluminum, zinc, among other metals also reported massive uptrends.<\/p>\n<p>But China recently has come up with a plan to tame the booming commodity prices.\u00a0The National Food and Strategic Reserves Administration said Wednesday that it would increase the supply of metals, including copper, aluminum, and zinc, to make them available to manufacturers.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Wow, more big moves from China to tamp down the commodity boom. Big change from earlier this year.  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/7EKPZJU1AJ\">https:\/\/t.co\/7EKPZJU1AJ<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/5Z3RCArxLH\">pic.twitter.com\/5Z3RCArxLH<\/a><\/p>\n<p>\u2014 Joe Weisenthal (@TheStalwart) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheStalwart\/status\/1405091430557757443?ref_src=twsrc%5Etfw\">June 16, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>McGlone hinted that a prospect of declining commodity prices would also mean great investment opportunities in the gold and Bitcoin markets.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/diversification-into-bitcoin-a-prudent-move-says-bloomberg-strategist\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Diversification into Bitcoin a \u2018prudent move,\u2019 says Bloomberg strategist &#8221; Bitcoin (BTC) price has retreated by more than 40% after topping out near $65,000 in mid-April. But that is not enough to derail the flagship cryptocurrency&#8217;s long-term bull trend, especially as global markets grapple with declining national currencies and the prospect of a commodity&#8230;<\/p>\n","protected":false},"author":1,"featured_media":276353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvZGNiMjJiMTQtZWFmNS00OGRmLTg4YWUtNjk5OThjYzg5MmFjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,74982,75022,74939,75150,73785],"class_list":["post-276352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-btc-markets","tag-central-bank","tag-market-analysis","tag-market-update","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/276352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=276352"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/276352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/276353"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=276352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=276352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=276352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}