The senior commodity strategist at Bloomberg said that crypto assets, which have made a difficult start to 2022, despite this difficult start, both in broader macroeconomic conditions. Bitcoin (BTC) He also thinks that it can have positive effects on Ethereum (ETH).
Sharing a new analysis, Mike McGlone thinks that the impact of the US midterm elections in November and a potential war in Eastern Europe may have a relative advantage for leading crypto assets over other investment classes.
“As the midterm elections in the US draw near, a lot can happen for crypto assets, especially against inflation-related commodities. With typical supply-demand elasticity, crude oil prices rising amid the risk of war in Ukraine are strong catalysts to stimulate oil’s persistent bear market. Bitcoin and Ethereum (ETH) for the opposite.”
The report mentions crude oil as “the most important commodity,” but states that Bitcoin may be poised to rise as supply and demand needs change.
“Bitcoin (BTC), an asset that represents advancing technology, continues to gain comparison as a global digital asset, with oil being replaced by decarbonization and electrification.
Bitcoin may be in a unique position for permanent price increase. The first cryptocurrency on its way to becoming a global digital collateral was able to start a revolution in the digitalization of finance, which emerged in the early days.”
McGlone thinks that domestic policy decisions regarding the digital asset space will also be beneficial in the coming months. The analyst explained this issue as follows:
“U.S. politicians need to invest in crypto with proper regulations and ETFs for the following reasons. [borsada işlem gören fonlar] We expect them to embrace it with: dollar dominance, jobs, votes, lots of income (taxes) and – most importantly – it will go against China’s antipathy.”
McGlone concluded by saying that Bitcoin’s recent recovery near the $40,000 level appears to be “more floor than ceiling” and that the next significant upside could indeed be $100,000.
Regarding the Ethereum price, he said: “Bull fundamentals were solid and technical guidance was simple, with buyers making around $2,000 and sellers about $4,000. Ethereum could repeat last summer and revisit around $1,700.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.