Mike McGlone, a senior commodity strategist at Bloomberg, thinks bitcoin (BTC) could be developing a “bottom” in the same way it did before the 2019 bull run, but said there’s a big difference this time around.
During an interview on Jan. 16 with cryptocurrency podcaster Scott Melker, McGlone argued unlike in 2018 when financial institutions like the Federal Reserve were easing interest rates; this time they are still tightening, he said, along with “every central bank.”
“Back then, the Fed already started to ease and we held the bottom and we broke out and then we had that problem in 2019,” he said.
“Right now they’re tightening aggressively, so you look at that and you can’t get too excited about any market. You have to give it time. In general, yes, bitcoin is very bullish,” McGlone added.
McGlone also warned that BTC may not experience the expected rise yet, as there are difficult macroeconomic conditions and pressure from rising interest rates.
In his opinion, The Nasdaq is likely to drop 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 running away, and if the Nasdaq breaks, everything breaks; bitcoin is going to be a part of it.”
“I still think he’s going to pull through, so for me that’s where we are,” he added.
McGlone also said that 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 took the bin, we’re not going to give it back.”
“I still think that We are in the midst of the biggest macroeconomic reset of our lives: we have just had a 100-year event in terms of a pandemic, we are having a historic war in Europe, and we are having a historic change in political leadership in China,” he added.
“I mean we’re going back to the days of the Soviet Union, when you had a leader and you expected to be economically viable.”
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