Bloomberg’s chief commodity strategist, Mike McGlone, still sticks to his view that the cryptocurrency winter may be coming to an end because of the weakness of the Fed’s hammer.
In the next few years Mike McGlone expects the industry to show signs of being stronger than ever, with Bitcoin surging past $100,000 and Ethereum trading at $6,000 by 2025.
“Bitcoin is forming a similar bottom to where it was before the bullish rally of 2019 but with one big difference,” says Bloomberg analyst Mike McGlone.
McGlone added: “Unlike in 2018 when financial institutions like the Federal Reserve were easing interest rates, this time they are tightening, along with ‘every central bank’.
The chief commodity strategist at Bloomberg right now thinks that central banks are clamping down on inflation pretty hard, so you can’t get too excited about any markets.
“We should give bitcoin some time, as the bullish trend for the first cryptocurrency has already begun,” added Mike McGlone.
McGlone also warned that Bitcoin may not see predictions for this record rally just yet, given the tough macroeconomic conditions and pressure from rate hikes.
He believes that the NASDAQ is likely to drop below its 200-week moving average, which he claims is another indicator that may delay the Bitcoin price rally taking off with necessary force soon.
“Now liquidity is being sucked away,” said Bloomberg’s chief commodity strategist, “and if the Nasdaq crashes, everything collapses, and Bitcoin is going to be part of those crashes.”
However, he added, “I still believe that Bitcoin has already bottomed out and that it will start breaking out from current levels.”
He also said that the market has entered an “unprecedented” environment, “where we’re seeing a bounce back in what we know about bear markets, and the main driver of the markets right now is just the Fed.”
Bloomberg’s chief commodity strategist reiterates his stance that Bitcoin will rise to $100,000, except that due to the global macroeconomic winter, it could take up to three years for the asset to appreciate.
“Bitcoin to me, it’s only a matter of time before it hits $100,000,” McGlone added. “The basic fact is that adoption and demand are increasing unless you expect the opposite. It’s just a matter of time right now.”
Regarding the second largest cryptocurrency, Ethereum, he predicted that its price would rise to $6,000 by 2025.
McGlone argued that the reason for the rise of digital currency Bitcoin in the future is that it is the fastest horse in the race where the asset class has a rapidly evolving technological advantage.
Bitcoin rose by 23% in a week, while it jumped by 27% in a month, and by 10% in ninety days, while it rose by 28% since the beginning of the year, but it still fell by more than 60% from its historical peak at levels of $ 69 thousand.
Bitcoin increased during these moments from today’s transactions by more than 2%, reaching levels of $ 21.3 thousand, while it recorded the lowest price near $ 20.7 thousand levels.
Bitcoin’s market value jumped to $410 billion, bringing the digital currency market’s dominance rate closer to 41.5%, with the market capitalization now standing at about $990 billion, after giving up some of its gains.
The article does not express a recommendation or nomination, but merely monitors the fluctuations of the market, as trading in digital currencies involves high risks, including the risk of losing some or all of the investment amount, noting that it is not fully subject to the bodies and markets.