According to Mike McGlone, a senior commodity analyst at Bloomberg Intelligence, the outlook for bitcoin markets is looking positive. In a recent tweet, McGlone referred to a "warm spell" coming for the cryptocurrency, indicating his belief that it is likely to perform well in the near future. He also noted that what was previously resistance for bitcoin against the Nasdaq 100 stock index may now be transitioning to support.
This sentiment is supported by a chart shared by McGlone, which shows the bitcoin price breaking free from the confinement of the stock index level in the fourth quarter of 2020, due in part to the unprecedented fiscal and monetary stimulus being implemented by governments and central banks around the world.
McGlone's optimism about the future of bitcoin is not unfounded. He previously predicted that both bitcoin and Ethereum had likely completed the majority of their drawdown, and now sees bitcoin as being "poised to resume its inclination to outperform." However, he does suggest that this "warm spell" for bitcoin will not fully materialize until the US Federal Reserve pivots toward monetary easing. Despite the current economic uncertainty, McGlone believes that the risk versus reward of investing in bitcoin argues in favor of not under-allocating or underestimating the cryptocurrency's potential to continue on its trajectory toward becoming a widely-accepted form of digital collateral.