3 Reasons Why Bloomberg Calling Bitcoin a 'Resting Bull' Is Inaccurate

Published on by Cointele | Published on

Bloomberg senior commodities strategist Mike McGlone recently released a midyear crypto outlook, which states that Bitcoin volatility should continue to decrease as the asset behaves more like gold.

The report concludes that Bitcoin is set for a breakout with a target at the $13,000 resistance.

Correlation metrics for the past six months have drawn Bitcoin away from gold's hedge status, as it has been trading in sync with the S&P 500 most of the time.

The same can be said about the record-breaking increases in Bitcoin futures open interest as every derivative instrument needs a buyer and seller of the exact same size.

Bitcoin's correlation to gold and the S&P 500One of the reasons Bitcoin caught investors' eyes during the past couple of years is the digital asset's lack of correlation to traditional investments.

Grayscale Bitcoin Trust inflowThe Bloomberg report states that increasing inflow to Grayscale Investments' funds is a sign of bullish investor sentiment.

Open interest on Bitcoin futuresThe Bloomberg report also cites growing CME Bitcoin futures open interest as a signal of asset maturation and a positive price indicator.

Not to mention, CME Bitcoin futures are financially liquidated instruments, meaning no actual BTC is moved on contract expiry.

Mainstream adoption has nothing to do with derivatives trading as Bitcoin has been designed to work independently, without the need of ETF and financial instruments.

Mainstream adoption is more likely to happen when major investment funds create direct exposure to Bitcoin.