According to the Bloomberg analyst, Bitcoin is building a bottom similar to how it appeared prior to the 2019 bull run, but with one significant difference in the markets.
Bloomberg’s senior commodity strategist, Mike McGlone, believes Bitcoin is nearing a “bottom” in the same way it did prior to the 2019 bull run, but there is a significant difference this time.
During a Jan. 16 conversation with crypto podcaster Scott Melker, McGlone claimed that, unlike in 2018, when financial institutions such as the Federal Reserve were lowering interest rates, they are now tightening alongside “every central bank.”
“At the time, the Fed was already relaxing, and we held the bottom and burst out higher, and then we had that difficulty in 2019,” he explained.
“They’re tightening aggressively right now, so you can’t get too enthused about any markets. Allow some time. Yes, in the big perspective, Bitcoin is quite bullish “McGlone continued.
McGlone also cautioned BTC that the anticipated spike may not occur due to tough macroeconomic conditions and pressure from interest-rate hikes.
He believes the NASDAQ is likely to go below its 200-week moving average, which he says is another sign that BTC’s price surge may be delayed.
“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 believe it will come out ahead, so that’s where we stand,” he added.
McGlone also stated that the market has entered a “unprecedented” period, in which “we’re having bounces in what we know are bear markets and the Fed basically says, sorry, we’re taking the punchbowl away, we’re not giving it back to you.”
“I still believe we’re in the midst of the biggest macroeconomic reset of our lifetimes; we just experienced a 100-year event in terms of the pandemic; we’re in the midst of a historic conflict in Europe; and we’re in the midst of a historic shift in political leadership in China,” he continued.
“I mean, it’s like going back to the Soviet Union, when you have one leader and hope to be economically successful.”
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