Bitcoin is becoming collateral in the world’s paradigm shift marked by Russia’s invasion of Ukraine and China banning crypto in 2021, says Mike McGlone, a senior commodity strategist at Bloomberg. He believes the two events “may mark a paradigm shift illustrating the risk of autocratic, old-guard societies falling behind” as the digital world advances.
McGlone tweeted that in a world going digital, Bitcoin is going collateral. He highlighted that most investors are just starting to move from zero. The expert shared a chart showing that the popular crypto has remained largely at the same level as in the first quarter of 2021. This is in terms of volatility, compared to S&P 500 and the Nasdaq 100.
Last month, McGlone stated that Bitcoin is maturing into a “global digital collateral”. He considered BTC’s divergent strength compared to the stock market and its losses in 2022 were less than half of those in the Nasdaq 100. In January, McGlone highlighted Bitcoin’s role in the ongoing digital assets revolution. He said the significant entry and exit of the capital showed the extent of the expanding crypto dollar economy.
The expert explained that crypto markets may be coming out ahead of other markets in the ebbing tide of the lower stock market and the US Federal Reserve fighting inflation with central banks in Western countries.