According to Bloomberg Analysts Bitcoin Price To Suffer A Little More Pain For A Huge Profit


For most investors, Bitcoin’s canary in a coal mine may be a cause for concern, but Bloomberg’s Mike McGlone isn’t one of them.

Bloomberg’s lead commodities analyst issued a May report this week urging investors to remain cautious, despite the continuous flow of macroeconomic headwinds on the markets.

Amidst falling risk assets, McGlone warned that Bitcoin and other virtual currencies were quickly gaining an advantage.

A new analysis says that at the beginning of May, “the trend of increasing bitcoin and crypto acceptance, institutional engagement and declining volatility — compared to most traditional assets — is gaining speed.”

Bitcoin’s present predicament, according to the research, lays the stage for a reversal, with the top expert predicting a trough “when the fed funds futures in a year bottom,” as was the case in 2018.

According to Jamie Douglas, a senior market structure analyst, at McGlone said; This was the first time in three years that Bitcoin fell below its 50-week moving average (MWMA) in May of last year. Stocks continued to fall in November, and the white line on our charts bottomed when they did. “By 2022, we can find similarities.”

Though Bitcoin’s diverging strength in contrast to the stock market in 2022 was reported, McGlone cautioned that Bitcoin may have to bear greater suffering in the short term before achieving more long-term success. He predicted that price volatility will remain significant in the near future. A bullish surge might be set in motion by further development of Bitcoin and further use of its technology.

McGlone attributed the Fed’s efforts to combat the biggest inflation in roughly 40 years as a possible obstacle to Bitcoin reaching the $100,000 milestone.

As long as people’s capacity to spend on goods and services does not fall, the Fed is likely to keep raising interest rates until inflation cools down.

McGlone expects Bitcoin’s price will double or triple by the end of the year after the present storm passes, presumably before the end of this quarter. According to him, it is most probable that Ethereum is also creating a foundation around between $2,000 and $4,000.

While Bitcoin is now trading at $29,146, down over 5% from its previous week’s high, Ethereum is down to $1,964 as of the writing.

Also Read: The CEO of Binance Shares “Lessons” From the Terra Collapse

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