Bloomberg senior strategist Mike McGlone believes that the bottom in the cryptocurrency market has already been passed. He noted that the charts resemble the situation in 2018, although the macroeconomic situation is quite different.
During an interview with cryptocurrency analyst and blogger Scott Melker, Mike McGlone compared Bitcoin’s current rise above $20,000 to charts from 2018, when the price of the first cryptocurrency bounced off $5,000.
However, the Bloomberg Intelligence strategist emphasized that the growth of bitcoin may stop at current values. The point is the macroeconomic situation. So, the NASDAQ index may continue to fall, and in recent years, the correlation between bitcoin and the stock market is very significant.
“We are still pulling liquidity from global markets, and there are reasons for this. And even if equities and other risky assets rise, liquidity will remain limited by central banks. The big difference from 2018 is that at that time the Fed had already begun to ease its policy, and today we do not see any easing.
Look at the NASDAQ – the chart is preparing to break through the 200-week moving average. This has happened only 3 times in history and the Fed has always softened its policy. But now the US Central Bank is aggressively tightening monetary policy. The overall picture is optimistic for bitcoin, but now is an unprecedented situation, so anything can happen,” said McGlone.
Earlier, McGlone said that he still believes in the success of BTC and ETH.
Source: Bits
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