Bloomberg’s Chief Commodities Expert Believes Bitcoin and Crypto Have Now Entered the Mainstream, Here’s Why
- “Crypto has entered the mainstream”
- Binance’s US Chief Comments on Bitcoin’s Decline
Mike McGlone, Bloomberg’s chief commodities strategist, said shared a graph this demonstrates a decline in the equity market that occurred at the same time as the Bitcoin plunge.
The other chart shows that Bitcoin may have passed the correction test. The potential results are in favor of Bitcoin, McGlone added.
“Crypto has entered the mainstream”
Bloomberg’s chief commodity expert recalled the market decline on May 19, when not only Bitcoin printed a decline but also stock indices.
McGlone shared a chart comparing Bitcoin’s sharp drop with a modest drop in the Nasdaq 100 stock index.
The peaks and falls of Bitcoin and the Nasdaq 100 stock index occur simultaneously.
He pointed out that the May 19 market decline happened “on the back of Bitcoin,” showing that the crypto has become mainstream now.
The potential outcomes of this fall are “tilted in favor of Bitcoin,” according to McGlone.
Binance’s US Chief Comments on Bitcoin’s Decline
Another expert, Brian Brooks, CEO of Binance US and former head of the Currency Comptroller’s office, takes a similar view.
Brooks told CNN’s Julia Chatterley that it wasn’t just Bitcoin that plunged, but also the Dow Jones and the S&P 500. However, the drop wasn’t that deep: just 2-3% against a drop. 30% of Bitcoin.
Brooks explained this by the wider range of tools that stocks can be traded with: “There’s a lot more price discovery in traditional asset classes: you have swaps, futures, trades discovered.”
None of the major crypto exchanges in the United States were allowed to integrate products that would offer more price discovery in the market, Brooks added.
As for the reasons for the decline, Brooks referred to inflation, international tensions and “China issues”. All of this has caused people to dump risky assets.