Mike McGlone, a senior commodity strategist at Bloomberg, believes Bitcoin (BTC) could be developing a “bottom” in the same way it did before the 2019 bull run, but said there is a big difference this time around.
During a Jan. 16 interview with cryptocurrency podcaster Scott Melker, McGlone argued that unlike in 2018, when financial institutions like the Federal Reserve were lowering interest rates, this time they are still capping them along with “everyone else.” central banks”.
“Back then the Fed already started to ease and we held the bottom and went up and then we had that problem in 2019,” he said.
“Right now they’re tightening aggressively so look at that and you can’t get too excited about any market. Give it some time. Big picture yeah Bitcoin really bullish,” McGlone added.
McGlone also warned that BTC may not see the expected rise yet as challenging macroeconomic conditions and pressure from interest rate hikes are in place.
He believes that the NASDAQ is likely to fall below its 200-week moving average, which he says is another indication that the BTC price rally may not happen anytime soon.
“Liquidity is still being wiped out and if the NASDAQ breaks, everything breaks, Bitcoin will be a part of that.”
“I still think he’s going to pull through, so for me that’s where we are,” he added.
Related: Arthur Hayes: Bitcoin bottomed out because ‘everyone who could go bankrupt has gone bankrupt’
McGlone also said the market has entered an “unprecedented” environment, “where we’re bouncing in what we know are bear markets and the Fed just says, sorry, we’re taking the punch out, we’re not going to give it back.” for you.”
“I still think we’re in the middle of the biggest macroeconomic reset of our lives, we’ve just had a 100-year event in terms of a pandemic, we’re having a historic war in Europe, and we’re having a historic change in political leadership in China,” he added. .
“I mean it goes back to the days of the Soviet Union when you have a leader and you expect him to be economically viable.”
