Key facts:
The performance of bitcoin in July is positive and shows a rebound of 7.58%.
In the BTC price correction, stablecoins have grown 80% in capitalization.
Despite the fact that the bearish trend of the price of bitcoin (BTC) has been maintained for almost eight months, the senior analyst of the Bloomberg Commodities Division, Mike McGlone, affirmed this Wednesday, July 6 that bitcoin could start one of the biggest bull markets in history.
McGlone highlighted through his Twitter account that bitcoin starts the second semester with a relatively low price. “Our bias is that bitcoin adoption is more likely to continue to rise,” McGlone noted.
McGlone showed in a graph the behavior of oil and bitcoin prices in relation to the S&P 500 index, which is entitled “Bitcoin bullish and oil bearish vs. the stock market.”
According to the graph, since 2021 the relative performance of oil against the stock market has been increasing, while the trend of bitcoin with respect to the stock market has been decreasing, despite the fact that the correlation between them has increased.
For some market participants, the macroeconomic situation will have the last word. The largest US exchange, Coinbase, opines that the 66% drop in cryptocurrency prices can be attributed to deteriorating macro conditions, while the weakening of the future outlook for cryptocurrencies is responsible for the price decline in 33%.
Stablecoin dominance grows
McGlone also draws attention to the proliferation of stablecoins, cryptocurrencies pegged to the US dollar, which has occurred in the midst of the current bitcoin correction. To do this, divide the market capitalization of stablecoins by the total capitalization of cryptocurrencies.
McGlone notes that the current ratio is 0.17. That means stablecoins comprise 17% of the total market capitalization. The market value of stablecoins has grown 80% since November 2021, while the Bloomberg index of cryptocurrencies has dropped 78% in the same period, the analyst says.
Another aspect that highlights the growing importance of stablecoins is that two of them, Tether (USDT) and USD Coin (USDC), are among the Top 5 cryptocurrencies by market capitalization. These stablecoins are positioned in places 3 and 4 of the classification, respectively, and together represent 12.8% of the total capitalization. This demonstrates a fundamental consistency in the cryptocurrency sector, that the “crypto dollars” are here to stayMcGlone points out.
The BTC price is at the time of writing this article at USD 20,888, which implies a rebound of 1.76% in the last 24 hours and 7.58% so far in July, according to to the CriptoNoticias price index. The depreciation of BTC this year is 56%.