Bloomberg intelligence analyst Mike McGlone argued bitcoin’s price is supported by favorable supply, demand, and macroeconomics.
In a report published in Bloomberg’s May 2020 Crypto Outlook series, analyst McGlone argued that bitcoin’s diminishing supply and increasing demand provides a “favorable” macroeconomic outlook for the price of bitcoin.
McGlone highlighted next week’s block reward halving as a substantial for bitcoin over gold.
He wrote,
In May, the daily production of new coins will drop by half, and unlike quasi-currency brethren gold, higher prices won’t be an incentive for more supply.
The Bloomberg analyst continued, saying that bitcoin’s volatility has declined while the risk in traditional market equities is on the rise. McGlone called adoption the most important metric for bitcoin in light of its dwindling supply, with “most indications” remaining positive for the use of cryptocurrency as central banks employ controversial liquidity measures.
McGlone wrote that 2020 was creating an “increasingly favorable” macroeconomic backdrop for bitcoin through the combination of rising equity volatility and diminishing bond yields. He predicted bitcoin was to maintain an advantage over other speculative assets, including alternative cryptoassets.
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