Bloomberg analyst tips bullish BTC recovery in next six months

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Bloomberg Senior Commodity Strategist Mike McGlone has said that the price of Bitcoin (BTC) will rebound in the second half of 2022 (2H).

Sharing his thoughts with his 48,100 Twitter followers on 6 July, McGlone saw positive signs in Bloomberg’s Galaxy Crypto Index (BGCI) and 50-week and 100-week moving averages data for BTC price. He suggested That current indicators are showing similar signs to the bottom of the bear market in 2018, which was preceded by a strong rally in the first half of 2019.

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“The Bloomberg Galaxy crypto index is close to a similar decline as 2018 bottom and bitcoin’s discount to the same 50- and 100-week moving averages as previous foundations, risk versus reward is leaning towards responsible investors in 2H.”

BCGI is designed to measure the performance of the largest crypto assets to get a general view of the overall performance of the market. Moving averages indicate the average price of an asset over a specific time period such as 50 or 100 days.

According to data from Coingecko, the crypto winter in 2018 was a tough time for BTC, as the price fell from the $16,000 area in January to a low of around $3,200 by mid-December. However, after the massacre, BTC reached around $13,000 by the end of June.

McGlone predicted in a follow-up post that BTC is either “one of the biggest bull markets in history to launch 2H at a relatively discounted price” or that data is showing that the crypto market is starting to fail. and is scaring investors.

“We have a bias [that] The potential for increasing bitcoin adoption is high,” he said.

McGlone compared the wash out in 1H to “the bursting Internet bubble of 2000-02,” which saw many firms tank but also paved the way for top companies like Amazon and eBay to grow.

However, weighing on the analysis is the fact that the recession has been in large part in response to the US Federal Reserve’s aggressive monetary policy and inflation reel-in efforts through a series of interest rate hikes.

In 2022, BTC and the overall crypto market has faced several macro factors such as Russian invasion of Ukraine, global regulation and unemployment rate. Meanwhile, the explosion of crypto projects and companies has turned the sentiment into an even more bearish one.

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On June 5, McGlone noted that if the stock market continues to fall at “the same velocity as 1H”, the latest interest 75 basis point increase from the Fed in June could be the last one of the year, as the government works to avoid a recession. . Such an outcome could lead to a surge in asset classes as investors re-enter the market.