- bloomberg intelligence Bitcoin and other cryptocurrencies are discussed as it relates to defining adoption, markets, and asset classes.
- The report explains how bitcoin is separating itself from standard risk-averse assets and becoming a risk-averse asset.
- bloomberg intelligence The Federal Reserve also discusses the historical pattern of policy as it relates to bitcoin and the bear-market, providing a possible outlook.
latest bloomberg intelligence The May report discusses the unprecedented adoption of bitcoin and other cryptocurrencies, markets, and the unprecedented development of monetary technology.
The report states that bloomberg intelligence The key conclusion from the Bitcoin 2022 conference in Miami was that “what is happening to advance money and finance in the 21st century is unstoppable.”
At the beginning of the report, bloomberg intelligence Note the decline in institutional participation and volatility in bitcoin versus traditional risk assets shows a clear divergence in favor of bitcoin, allowing investors to break away from the typical pitfalls of traditional assets. bloomberg intelligence “Our idea is not to dilute the ‘trend is your friend’ mantra,” it says, explaining that investors who choose not to allocate, at least partially, may suffer the most.
The report further reflects the divergence of bitcoin as a standard risk-asset, comparing it to the year-to-date (YTD) numbers for the Nasdaq 100 stock index as of May 3. up to that point. The Nasdaq 100 is down -20%, while Bitcoin is down only -15%. bloomberg intelligence Opposes this to represent bitcoin becoming a risk-free asset.
The separation from traditional assets becomes even more important as the world awaits the latest Federal Open Market Committee (FOMC) meeting today. As the Federal Reserve continues with quantitative tightening, bloomberg intelligence notes that bitcoin is well positioned to overtake a broader market cap in the face of “potentially more expanding equity prices”.
However, bitcoin appears to be deviating from central bank policy decisions, indicating a milder bear market than historical bear markets. As can be seen below, during the previous tightening phase, bitcoin has risen. As with holding, the asset remains at level. Bitcoin has historically soared, thanks to loose easing practices.
While the report outlines another expected take-down as the Federal Reserve has just begun the toughening process, bloomberg intelligence Points to “HODL behavior”, which shows more addresses and new addresses holding their bitcoins equally. This HODL mentality gives rise to expectations of a much greater decline than previously thought for the negative economic effects of the Federal Reserve.
“We see what bitcoin has been doing for most of its existence – to continue to outperform most traditional asset classes,” the report said.