Bitcoin Price Will Suffer Some More Pain For A Massive Gain
Most investors are concerned about Bitcoin’s canary in the coal mine, but Bloomberg’s Mike McGlone is not. Despite markets’ ongoing suffering under the reels of global headwinds, Bloomberg’s senior commodity analyst advocated for calm in a May report issued midweek.
Despite giving back more than half of their gains, McGlone said that Bitcoin and other cryptocurrencies were quickly gaining a leg up on risk assets.
The report read:
“The process of increasing bitcoin and crypto adoption, institutional involvement and declining volatility –vs- most conventional assets is gaining momentum at the start of May,”
The current state of Bitcoin, according to the research, is ripe for a turnaround, with the top analyst expecting a trough “when the fed funds futures in a year bottom,” similar to the 2018 bottom.
Referring to the chart below, McGlone, flanked by Jamie Douglas, a senior market structure analyst wrote:
“In May 2018, Bitcoin dipped below its 50-week moving average for the first time in three years. The stock index sustained below this mean in November and when it did, the white line in our charts bottomed. We see parallels in 2022.”
Despite the fact that the analysis stated that the flagship currency was showing higher divergence strength in 2022 than the stock market, McGlone cautioned that Bitcoin may need to suffer more pain in the immediate term in order to achieve more long-term upside potential.
In the short term, he predicted that high volatility with price repercussions would remain. However, with continuing maturation and adoption, he believes BTC will bottom out in 2020, setting the stage for another bullish run.
McGlone blamed the Fed’s actions to combat the biggest inflation in roughly 40 years for preventing Bitcoin from reaching $100,000.
McGlone wrote:
“Unless risk assets decline and reduce people’s ability to spend on goods and services, the Fed is more likely to ramp up hikes until inflation cools, ”
When the current storm passes, perhaps before the end of the quarter, McGlone expects Bitcoin to outperform in the second half of the year, or even triple by the end of the year. He went on to say that Ethereum was most likely creating a base between $2,000 and $4,000.
Bitcoin is currently trading at $29,146, down over 5% this week, while Ethereum is currently trading at $1,964.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Patrick
CoinCu News
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Bitcoin
Bitcoin Price Will Suffer Some More Pain For A Massive Gain
Most investors are concerned about Bitcoin’s canary in the coal mine, but Bloomberg’s Mike McGlone is not. Despite markets’ ongoing suffering under the reels of global headwinds, Bloomberg’s senior commodity analyst advocated for calm in a May report issued midweek.
Despite giving back more than half of their gains, McGlone said that Bitcoin and other cryptocurrencies were quickly gaining a leg up on risk assets.
The report read:
“The process of increasing bitcoin and crypto adoption, institutional involvement and declining volatility –vs- most conventional assets is gaining momentum at the start of May,”
The current state of Bitcoin, according to the research, is ripe for a turnaround, with the top analyst expecting a trough “when the fed funds futures in a year bottom,” similar to the 2018 bottom.
Referring to the chart below, McGlone, flanked by Jamie Douglas, a senior market structure analyst wrote:
“In May 2018, Bitcoin dipped below its 50-week moving average for the first time in three years. The stock index sustained below this mean in November and when it did, the white line in our charts bottomed. We see parallels in 2022.”
Despite the fact that the analysis stated that the flagship currency was showing higher divergence strength in 2022 than the stock market, McGlone cautioned that Bitcoin may need to suffer more pain in the immediate term in order to achieve more long-term upside potential.
In the short term, he predicted that high volatility with price repercussions would remain. However, with continuing maturation and adoption, he believes BTC will bottom out in 2020, setting the stage for another bullish run.
McGlone blamed the Fed’s actions to combat the biggest inflation in roughly 40 years for preventing Bitcoin from reaching $100,000.
McGlone wrote:
“Unless risk assets decline and reduce people’s ability to spend on goods and services, the Fed is more likely to ramp up hikes until inflation cools, ”
When the current storm passes, perhaps before the end of the quarter, McGlone expects Bitcoin to outperform in the second half of the year, or even triple by the end of the year. He went on to say that Ethereum was most likely creating a base between $2,000 and $4,000.
Bitcoin is currently trading at $29,146, down over 5% this week, while Ethereum is currently trading at $1,964.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
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