Key facts:
After the rise of BTC to USD 21,000, analysts give bullish predictions for the second half of the year.
Some estimate that the Fed will stop raising interest rates, which would benefit BTC.
The price of bitcoin (BTC) broke above the $21,000 line this morning. This rise has allowed those who bought the cryptocurrency to enter profits over the weekend, when it hit its lowest point of the year: USD 17,600. With this bit of good news for the market, some bullish predictions emerged for the near future.
Amidst the rising tide of bearish projections, renowned commodity analyst Mike McGlone shone a hopeful light for the bitcoin market. Today public on his Twitter account that the fall in risk assets in the first half of the year is driving inflation to a dizzying pace.
He understands that this may translate into the resurgence of pre-pandemic devaluation forces in the second half of 2022. As a consequence, he estimates that the main beneficiaries of this scenario may be bitcoin, gold and bonds US Treasury longs.
In this panorama, he clarifies that he sees a possible maturation of the bitcoin market as he visualizes the red-hot stock market. The reason for this is that he finds that in the In the long term, the volatility of stock indices, such as the Nasdaq 100, is higher than that of cryptocurrencies.
That’s why, recognize to bitcoin in its adulthood, while he predicts a very choppy stage for stocks, bonds and commodities. Likewise, it attributes the current bearish trend of the cryptocurrency to a typical reduction.
Several times in the past bitcoin has suffered sharp depreciations of up to 93% and then managed to overcome that losing streak with an all-time high. In fact, this month marked the 11th anniversary of the first big rise in bitcoin that ended with a terrible crash that wiped out almost all the growth it had had. Just two years later he managed to recover that value and surpass it.
Bitcoin recovers slightly and bullish predictions are reborn
Three days ago, Mike McGlone had advanced that the Fed may not raise the interest rate any further. In this case, the 75-point increase announced last week would be the last. From this perspective, he considers that the fall in risk assets is what would complete the economic adjustment.
This projection is similar to the one given by Ledn co-founder Mauricio Di Bartolomeo in an interview with CriptoNoticias. At the meeting, the businessman reported that think bitcoin bear market could end in three months if the Fed stops raising interest rates, which adds to the analyst’s bullish projection.
McGlone warns that the economic situation of 2022 resembles that of crack of 1929, which was considered the most catastrophic stock market crash in history. He describes that it was characterized, as now, by having aggressive rate hikes despite the fall in the stock market, world GDP and consumer confidence.
In this context, popular crypto market analyst TechDev it gave today also a bullish prediction for bitcoin. He pointed out that the current direction of the cryptocurrency has potential symmetry with its behavior just before the strong rise it achieved in 2013. A scenario that tries to sweep away the uncertainty that reigns in the market, where extreme fear still remains.