- Bloomberg Intelligence senior commodity strategist Mike McGlone stated that Bitcoin trades at a substantial discount.
- McGlone highlights several observations when making his case, such as technical analysis focusing on key indicators such as the 100-week moving average.
- McGlone stressed the Federal Reserve’s critical role in the price of equities and cryptocurrencies.
- Bitcoin is currently trading at $23,203.64, according to CoinGecko, a %66.4 drop from its all-time high.
According to Forbes, McGlone’s observations come from technical analysis focused on a specific indicator. Bitcoin has reached the lowest ever price vs. its 100-week moving average, McGlone continues to say, by describing the currency as being at “an extreme discount within an enduring bull market.”
The Bloomberg analyst remarks that the Federal Reserve’s role should not be underestimated.
“Don’t fight the Fed has been my mantra for risk assets since late last year,” McGlone stated.
“Bitcoin is well on its way to becoming global digital collateral in a world going that way and Ethereum is a primary driver of the digital revolution as evidenced by making possible the most widely traded cryptos — dollar tokens,” McGlone stated for Forbes.
Market is Resilient at $18,000
Other big names in the industry have weighed in on the matter, such as Budd White, co-founder of crypto company Tacen. White’s opinion is that Bitcoin is not only oversold, but it is hovering in the accumulation phase at present.
This value comes after huge liquidations in the industry such as the Terra collapse, 3AC liquidation, and also most recently Elon Musk’s Tesla $1 billion sale.
White noted that markets appear to be pricing in even more aggressive monetary tightening as a result of the soaring numbers. This could hint towards the cryptocurrency market decoupling from stocks however White does not rule out that Bitcoin could experience another further leg down.
“But this relative strength tells me that the bulk of the Bitcoin selling might be behind. And barring any exogenous shock to markets – such as credit markets looking to be on the verge of breaking – I’m thinking that investors are still looking at Bitcoin as a decent buy at these levels,” White stated.
Bitcoin in Accumulation Phase
Trading at a 66% decline from it’s all time highs in 2021, it is important to note that stock and crypto decline might not be in the clear as of yet. There are still macroeconomic and geopolitical pressures which could make investors further retreat from crypto assets. All eyes have been recently on how the the FED would respond to soaring inflation and potential recession threats.
However, many experts believe that “bad news” may have already be priced in and investors will continue to see upward movement in the short-term.