A new economic reality is dawning on Bitcoin (BTC), which seems to be a significant rival for the top digital currency, according to Bloomberg strategist Mike McGlone. The expert claims that Bitcoin’s growth may be significantly hampered by the fact that it must compete with Treasury Yield, which offers a 5% interest rate.
Bitcoin analogy
Bitcoin was compared by the Bloomberg market analyst to a “teenager raised on a high-sugar/stimulant diet of extraordinarily low interest rates and facing weaning.”
He assumed that most of the beneficial network characteristics, such as its scarcity and early adoption pattern that gave Bitcoin the edge in the beginning, cannot support it endure the change in interest from government bonds that give so much safety.
McGlone also pointed out that the deflation of producer prices has led to an increase in profitability across the board. The top institutional investors’ attention may transfer from the extremely volatile crypto ecosystem to the established stock market as a result of all these macro dynamics.
Over the past several days, as a variety of market sentiments have diverted purchasers’ focus, Bitcoin has been facing many significant downturn pressures. The value of the most popular digital currency is currently $26,112.27, down by 1.33% over the previous 24 hours.
Although Bitcoin continues to have a strong association with the overall stock market, the currency may soon be able to escape the adverse eye it is now under due to rising sentiment.
Spot Bitcoin ETF Intrigue
The first is financial misery on the traditional markets, which can assist Bitcoin and the crypto world. There are normally two methods to promote growth in the crypto world. The second is predicated on a really encouraging development or piece of information that may have an impact on the coin’s acceptance or future.
The stories around the potential U.S. SEC approval of a spot Bitcoin ETF continue to be a focus point for outlining the most ambitious development in the BTC ecosystem going ahead.
