Through his Twitter account, McGlone said that copper particularly when compared to a rising Bitcoin, may be an excellent illustration of the minimal possibility for a commodities supercycle. The chief commodity strategist highlighted that the flagship digital currency’s advantage over copper will continue to grow in durability and maturity. Indeed, the Bitcoin Liquid Index against Copper future (LME) (R1) has continuously increased, whereas the Bitcoin 260-day volatility against Copper 260-day volatility (L1) has already reached 2.7, which is close to the levels seen in 2016 and 2017.
Bitcoin price
Presently, Bitcoin is trading at $43,747 up 1.09% on the day and 1.57% in the last week with a market cap of $828 billion. Previously, the senior commodity strategist had stated that the Chinese government crackdown on Bitcoin shows the revolutionary value of the asset who at the time of the clampdown revealed that probing $30,000 was necessary for the “supportive maturation” of Bitcoin that will later take it to a long-term uptrend. Since then, McGlone said in December that he thinks Bitcoin will climb to $100,000 in 2022, which he considers will be the “next key plateau.”
Precious metals
Elsewhere, despite the outlook not looking particularly bright for copper the portfolio manager at asset management firm Crescat Capital, Tavi Costa, has said that silver is now the most undervalued asset on the market, but that its fortunes are going to change. He argued that a number of variables, such as policy shifts, would likely shift the focus to silver leading to an explosive upward surge in prices. By the same token, Senior Commodity Strategist Daniel Hynes of the Australian bank ANZ said silver prices will rise while also predicting that gold prices would fall in 2022. He contended that the restrictive monetary policies would have an influence on gold prices, but maintained that the circumstances will encourage silver to perform better. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
