During a conversation with Daniela Cambone, editor-at-large at Stansberry Research, Bloomberg Intelligence Senior Macro Strategist Mike McGlone discussed the current state of the cryptocurrency market. McGlone predicts that the cryptocurrency market is entering its final phase of the bear market, though a turnaround may still be some time off. Also, it seems like we’ve passed the worst of the crypto winter.
McGlone speculated that the price of Bitcoin might drop in the near to intermediate future. According to his analysis, Bitcoin has hit a multiyear low in the past few months, but there’s still more room for decline before it reaches a good value. One more piece of evidence that Bitcoin is an emerging asset and technology that will evolve and grow.
Now, he said, we’re experiencing crashes like those seen in the dot-com industry from 2000 to 2002. He mentioned that there might be support around the $10,000 to $12,000 range. If this trend continues, Bitcoin will eventually recover and start climbing again.
In a tweet, McGlone said that the pressure and potential capitulation brought on by the decline in Bitcoin and crypto assets since the beginning of the year could set the stage for 2023.
Ethereum (ETH) is expected to perform better than other cryptocurrencies, according to Mike McGlone, because of the underlying value of the Ethereum smart contract platform. McGlone emphasized that ETH has outperformed most asset classes and has a solid support level close to its current price, which has increased by a factor of twelve over the past three years.
An important new version of Ethereum, known as the Merge, has been released. The transition from proof-of-work (PoW) to proof-of-stake (PoS) on the network has the potential to increase the value of ETH because it will slow the issuance of new tokens while also being beneficial to the environment.
According to McGlone, it was $100 at the end of 2019 before the pandemic struck, and it has found stable support at around $1,000 since then. From his perspective, ETH could fall slightly below support but will ultimately rise due to increased demand and dwindling supply. This suggests that ETH’s price growth may persist. To put that in perspective, Ethereum’s 12x increase in value is reflected in its current price of $1,268.34.