Bloomberg analyst Mike McGlone says bitcoin is bottoming out similar to what it looked like before the 2019 bull run — but with one big difference.
Mike McGlone, senior commodity strategist at Bloomberg, believes in bitcoin
BTC
Make a ticker below
$22,816
He could develop a similar “down” before the 2019 bull run but said there was a big difference this time around.
In a January 16 interview with crypto podcaster Scott Melker, McGlone argued that while the Federal Reserve and other financial institutions were lowering interest rates in 2018, they are still tightening this time around, as well as “every central bank”.
“Then the Fed was already starting to ease up and we held the bottom and moved up and then in 2019 we had that issue,” he said.
“Right now they’re aggressively tightening up, so you see that, you can’t get too excited about the market. Give me some time. The big picture, yes, really fast bitcoin,” McGlone added.
Graph showing Bitcoin market price. Picture: Mike McGlone
McGlone also cautioned that BTC is not yet forecasting this recovery due to challenging macroeconomic conditions and upward pressure on interest rates.
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He thinks the NASDAQ is likely to fall below its 200-week moving average, which he claims is another sign that BTC price growth may not happen anytime soon.
“Liquidity is still drawn and if the Nasdaq breaks, everything breaks, so bitcoin will be part of that.”
“I still think it’s going to come out ahead so for me that’s where we stay,” he added.
Related: Arthur Hayes: Bitcoin Bottom Line That ‘anyone who can be bankrupt is bankrupt’.
McGlone also said the market has entered an “unprecedented” environment, “where there is a boom in what we know is a bear market and the Fed just says, sorry we’re putting the punch away yeah, I’m not giving back to you”.
“I still think we’re in the midst of the biggest macroeconomic recovery of our lifetime, we’ve just had a 100-year event in terms of pandemics, there’s a historic war going on in Europe and there’s historic changes of political leadership in China ” he replied.
“I mean, when you have a leader and expect to be economically viable, it’s back in the Soviet Union.”
