Mike McGlone, senior strategist at Bloomberg, believes the virtual currency market has bottomed. While the charts are similar to the 2018 story, the macroeconomic environment is completely different, he said .
In an interview with cryptocurrency strategist and blogger Scott Merker, Mike McGlone compared bitcoin’s current $20, 000-plus rise to a 2018 chart in which the direction of one cryptocurrency retreated from $5, 000.
But the Bloomberg Intelligence strategist stressed that bitcoin’s rise could stall at its current value. That is a matter of macroeconomic history. For example, the Nasdaq index could continue to fall, and the correlation between bitcoin and the stock market has been very important in recent years.
We are still drawing liquidity from the space market, and we have the conditions to do so. And even as promotions and other risky assets rise, liquidity remains limited by central banks . The big difference with 2018 is that the Fed has already begun in that period . It has flattened its own policy and currently sees no easing measures.
Look at the NASDAQ. The chart is about to break through the 200 week moving average. This has only occurred three times in the entire situation, and each time the Fed has lowered its own policy number. But right now, the U.S. central bank is hostile to tightening monetary policy. We are confident in Bitcoin’s future, but it’s an unprecedented environment where anything can happen.”
McGlone previously stated that he believes BTC and ETH will win. Cannot read all totals.