Bloomberg Intelligence Senior Commodity Strategist believes that cryptocurrencies are now in the last phase before hitting the bottom.
Mike McGlone warned that this phase will be very difficult for investors and companies to get through:
“Usually, markets don’t just form a V-bottom. They make it as hard as possible with a lot of volatility, taking money from all investors.”
The Bloomberg analyst noted that investors are now experiencing not just a crypto winter, but the fall of all traditional markets, with the exception of commodity markets. According to him, until the commodity market starts to fall, the US Federal Reserve Service (FRS) will continue to raise the base interest rate.
However, there is good news: Ethereum has grown 12 times compared to 2019 and still continues to grow. McGlone argues that Ethereum is outperforming most asset classes and has strong support close to the current price level. According to him, Ethereum will bypass all cryptocurrencies due to growing demand and shrinking supply.
Last month, the CEO of crypto investment company Galaxy Digital said that Bitcoin and Ethereum will not leave the market – even as a crisis of confidence shakes the crypto industry.
Source: Bits
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