Current crypto prices are “at a steep discount” - Bloomberg Intelligence

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Current crypto prices are “at a steep discount” - Bloomberg Intelligence
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Crypto Bitcoin Ethereum cryptocurrency Current crypto prices are “at a steep discount” - Bloomberg Intelligence

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“A year from now, it's likely the Fed will have transitioned toward easing, and cryptos appear ready to resume their propensity to outperform most traditional assets,” McGlone said in his “2023 Cryptos Outlook.” When comparing the nascent asset class to oil, McGlone noted that while cryptos have only had a regulated futures market for five years, the current trend shows a “rising CME-traded Bitcoin futures' open interest vs. declining interest for crude oil.”

While it's possible that there is still more downside ahead for Bitcoin in the near term, McGlone suggested that the long-term outlook remains quite positive. McGlone said that he anticipates the BGCI will resume its “propensity to outperform,” adding that “about 70% of the BGCI is Bitcoin and Ethereum, which are notable for definable diminishing supply vs. increasing adoption and demand.”

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