Bitcoin (BTC) price has retreated past more than twoscore% subsequently topping out near $65,000 in mid-April. Only that is not enough to derail the flagship cryptocurrency'due south long-term bull trend, particularly equally global markets grapple with declining national currencies and the prospect of a commodity marketplace crash.

So believes Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, who said Wednesday that diversifying into store-of-value assets is a wise strategy against gloomy currency and commodity market outlooks.

"There's trivial take a chance of the dollar dropping in value vs. similarly depreciating currencies, which means that diversification into store-of-value assets like gilded and Bitcoin is simply a prudent movement, in our view," he tweeted Wednesday.

Coin printer goes brrr

McGlone's bullish analogy took references from a contempo spike in money injected into the U.Due south. and Eurozone economies. The U.S. Coin Supply M2, a mensurate of the money supply that includes greenbacks and checking deposits (M1) and about coin, reached $xx.256 trillion on May three, 2021, from $xv.384 trillion on February. 10, 2020.

A surplus liquidity injection into the U.South. economy left the dollar weaker against meridian foreign currencies. As a issue, the U.S. dollar alphabetize (DXY) fell by nigh xi.22% from its mid-March 2020 high of 101.947 to 90.v every bit of June 16.

U.S. recessions are shaded; the most recent end date is undecided. Source: Board of Governors of the Federal Reserve Arrangement

Meanwhile, the Eurozone Coin Supply M2, the money supply in the European Union surface area, surged from €5.6 trillion in February 2020 to over €14 trillion in March 2021

However, Euro rallied against the U.S. dollar despite its oversupplied status, with Jordan Rochester, a Group-of-10 foreign substitution annotator at Nomura International, noting that the European government'south attuned response to the coronavirus pandemic drifted capital out of the U.Southward. markets to enter the eurozone economy.

On the other hand, Bitcoin logged supersonic price rallies against the dollar and euro on promises to shield investors from higher inflation. While the BTC/USD exchange rate jumped from $3,858 in March 2020 to a piffling over $twoscore,000 in June 2021, the BTC/EUR exchange charge per unit spiked from €3,363 to around €32,000 within the same menstruation.

Contempo consumer price alphabetize reports in the U.Due south. showed that the inflation rate reached v% in May 2021, the highest since 1992. In Europe, the headline rate for price growth reached 2%, topping the European Central Banking company's (ECB) target.

Meanwhile, ECB chief Christina Legarde said that they would continue purchasing bonds, fearing tapering of whatever kind would derail the eurozone recovery.

Related: Looming 'death cross' may put Bitcoin balderdash run in danger ahead of Fed meeting

Federal Reserve officials also expect to sideline inflationary force per unit area as they conclude their two-day Federal Open Market Committee policy coming together on Wednesday. Earlier, the U.S. central bank said that higher CPI in April and May are "transitory in nature."

Article daze alee?

Investors deeming hedging assets like Bitcoin equally risky chose to stay hedged in relatively less volatile areas of markets such equally commodities. Copper, the bellwether for macroeconomic health, surged 67% as investors looked for havens confronting falling currencies. Aluminum, zinc, among other metals also reported massive uptrends.

But People's republic of china recently has come up with a plan to tame the booming commodity prices. The National Food and Strategic Reserves Administration said Wednesday that it would increase the supply of metals, including copper, aluminum, and zinc, to make them bachelor to manufacturers.

McGlone hinted that a prospect of declining commodity prices would also mean great investment opportunities in the gilded and Bitcoin markets.