The leading cryptocurrency Bitcoin (BTC) had one of its bad days today. After losing the psychological level of $20,000, BTC also saw below $19,000. However, according to a senior Bloomberg analyst, Bitcoin is still in a bull market, selling only at a discount.
“Bitcoin is still in a bull cycle right now!”
Mike McGlone, leading commodity strategist at Bloomberg Intelligence, shared his thoughts on the current situation in financial markets. However, this explanation was different from the others in one nuance. Because the expert suggests that Bitcoin is still in a bull cycle at the moment. But he says this cycle is getting longer and the leading cryptocurrency itself is currently on sale at a discount.
According to the analyst, the existence of BTC in a bull cycle is evidenced by consolidation at its 100-week moving average with the steepest cut. McGlone backs up his claim with a chart showing Bitcoin’s last such figures were around $300 in 2015 and then around $5,000 in early 2019.
The strategist relies on crude oil price levels in addition to Bitcoin in his inferences. According to Mike McGlone, the rapid rise in energy prices in the first half of the year intensified the Fed’s fight against inflation. It also put pressure on the riskiest assets. That’s why McGlone notes that once the dust settles, cryptocurrency prices will recover.
“If history repeats, it is possible for Bitcoin (BTC) to rise”
Mike McGlone, chief commodity strategist at Bloomberg, says Bitcoin is trading at a big ‘discount’. It also claims that BTC is currently in a good position. In this context, the strategist uses the following expressions:
Bitcoin joins gold and US Treasuries as global store of value
Known for his successful Bitcoin predictions, McGlone shared a screenshot with an excerpt from a recent Bloomberg report. Accordingly, this year, Bitcoin has been included among other important assets (gold and US Treasuries). In this context, it has become a global store of value. For McGlone’s accurate predictions cryptocoin.comSee this article.
Meanwhile, the Fed is promising further rate hikes as part of a hawkish stance to combat inflation. In this environment, commodities and global GDP are falling. The Fed’s strategy was driven by the massive rise in energy prices around the world in the first half of the year. Meanwhile, Bitcoin hid $19,000 gold.
The report also says that Bitcoin is currently going at a discount in a long bull market. The chart shared in the report shows that similar steep drops have occurred twice before, in 2015 and 2018-19, when Bitcoin fell from higher highs to $300 and $5,000 respectively. After these dips, the leading crypto has risen. McGlone suggests that it is possible for the same thing to happen this time.
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