Bloomberg Intelligence Senior Commodity Strategist on Crypto and the Relationship Between Crude Oil and Bitcoin Still in a Bull Cycle
Mike McGlone, a lead commodity strategist for Bloomberg Intelligence share His views on the current situation on the financial markets, but this statement differed from all others with one nuance. Therefore, the expert said that Bitcoin is still in a bull cycle, but this cycle is long, and the main cryptocurrency itself is selling at a discount right now.
According to the analyst, BTC’s presence in a bull cycle is evidenced by consolidation, with the biggest discount to its 100-week moving average. McGlone supported his claim with a chart showing that the last time bitcoin made such figures was in 2015 around a price of $300, and again in early 2019 at around $5,000.
September #cryptos Outlook – There are few more powerful forces than stocks that are falling with high velocity, especially #irrigated The world is heading towards recession. Cryptos are a minor part of volatility, but not from an advanced technology, leading-indicator position. pic.twitter.com/0Bnj4saAfm
— Mike McGlone (@Mike McGlone11) 6 September 2022
The strategist relies on crude oil price levels in addition to bitcoin in his projections. McGlone says it was the rapid rise in energy prices in the first half of the year that intensified the Fed’s fight against inflation, putting pressure on the most risk-averse assets. When the dust settles, cryptocurrency prices should rise again.
Current status of the crypto market
Although the market looked more upbeat this morning, the crucial $3,900 level on the S&P 500 was broken, bringing the crypto market closer to a further decline.
Bitcoin, for its part, is amazing. BTC dominance spiked to 38.9% momentarily, prompting a renewal of January 2022 lows. Most likely, this drop is due to Ethereum’s transition to PoS, which caused people to put money in ETH. The main altcoins on the market did not escape the fate of the entire market, but continued to trade in the green zone.