Bitcoin Is A Stable Asset, Remained Non-Impacted By FED Rate Hikes: Bloomberg Analyst

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The crypto market has turned red again as the majority of cryptocurrencies have dropped in value. Bitcoin has lost its crucial level of $19,200 and is leading the bear trend, causing other assets to crash as well. 

The crypto market is known for its correlation with the US stock market, especially Bitcoin and S&P 500. The US market is riddled with uncertainty at the moment, which has led to a similar scenario in the crypto space too. 

However, a well-known Bloomberg commodity strategist, Mike McGlone, believes that Bitcoin might soon be stepping into a massive maturation phase. To explain the claim briefly, he compared this to the current crude price of $84 per barrel, which was last seen in October 2007. 

He further says that during the recent interest rate hike by the Federal Reserve, the flagship currency was not highly affected, which indicates Bitcoin’s stability.

Decrease In Bitcoin Supply

McGlone also throws light on the latest developments such as the increase in outflows. Recently, on October 18, crypto exchanges saw an outflow of around $40,000 Bitcoins, which is the largest outflow in the last two months.

The same is reported by analytical firm, Santiment, which claims that the currency’s supply on exchanges has dropped by 8.48%. The report also asserts that as supply decreases on exchanges, it also decreases the chance for sell-off in future.

Conversely, the firm also reports that the social dominance of Bitcoin has dropped, indicating increased bearish momentum.

Hence, the next few days are very crucial for the Bitcoin price.