Bloomberg Analyst Compared Bitcoin to Amazon: “Still Outperforming Even If It Falls to $10,000”

According to Bloomberg senior commodities analyst Mike McGlone, Bitcoin has outperformed many other assets over the past decade, but it also comes with the risk of price reversals.

In a tweet on August 28, McGlone compared Bitcoin's performance to e-commerce giant Amazon.com, which is experiencing a huge spike in its stock price.

He noted that Bitcoin is trading at around $26,000, slightly below its end-of-2020 level, similar to Amazon. However, he noted that Bitcoin has seen a staggering 26,000-fold increase in the 12 years since it first traded at $1 in 2011, while Amazon has only grown 130-fold in 25 years.

McGlone suggested that this phenomenal performance could make it more vulnerable to Bitcoin price reversal with broader participation.

McGlone also drew attention to the increasing correlation between Bitcoin and Amazon, saying that this correlation was at around 0.40, the highest level ever. He attributed this to Bitcoin's transition to the mainstream facilitated by the launch of futures-based exchange-traded funds (ETFs) in 2021. He said these ETFs help reduce volatility in BTC and increase foreclosure arbitrage opportunities for investors.

McGlone concluded his tweet by saying that Bitcoin will continue its unprecedented performance even if it drops to $10,000.

*Not investment advice.

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