BTC is forming a bottom similar to that of 2018, with a major exception – Bloomberg analyst
According to Mike McGlone, senior commodity strategist at Bloomberg, Bitcoin (BTC) may be making a “bottom” in a similar manner to what it did before the start of the bull run in 2019, but this time there is a significant difference.
Unlike in 2018, when financial organizations like the Federal Reserve eased interest rates, McGlone stated during a Jan. 16 conversation with cryptocurrency podcaster Scott Melker, this time around they’re still tightening along with “every central bank.”
“Back then the Fed already started easing and we held the bottom and broke out higher and then we had that issue in 2019,” he said.
“Right now they’re tightening aggressively, so you look at that and you can’t be too excited about any markets. Give it some time. Big picture, yes, really bullish Bitcoin,” McGlone added.
McGlone however cautioned that due to difficult macroeconomic conditions and pressure from interest rate hikes, BTC might not experience the surge as expected just yet.
He asserts that the likelihood of the NASDAQ falling below its 200-week moving average is another sign that a rally in the price of bitcoin may not occur soon.
“Liquidity is being pulled away still and if the NASDAQ breaks down, everything breaks down, Bitcoin is going to be part of it.”
“I still think it’s going to come out ahead so to me that’s where we stand,” he added.
McGlone added that “we’re experiencing bounces in what we know are bear markets and the Fed just says sorry we’re taking the punchbowl away, we’re not giving it it back to you” because of the “unusual” market scenario.
“I still think we’re in the midst of the biggest macroeconomic reset of our lifetimes, we just had a 100-year event in terms of the pandemic, we’re having a historic war in Europe and we’re having a historic shift in political leadership in China,” he added.
“I mean it’s going back to the days of the Soviet Union when you have one leader and are expecting to be economically viable.”
