Bloomberg’s chief commodities strategist said the second half of this year could be bitcoin (BTC)’s time to shine, after nearly eight months of bearish price movement.
Analyst Mike McGlone recount its 47,000 Twitter followers that Bloomberg’s Galaxy Crypto Index, which tracks a basket of the biggest cryptocurrencies to track overall market performance, reflects its behavior since the bottom of the 2018 bear market.
“With the Bloomberg Galaxy Crypto Index approaching a decline similar to the 2018 low and Bitcoin shrinking from its 50 and 100 week moving averages similar to past foundations, risk versus reward is leaning to reactive investors in 2 hours.”
McGlone likens the current state of the crypto market to the dotcom bubble of the early 2000s. According to the analyst, a similar cycle is playing out in which overvalued projects are cleared from the space before the market reverses. on a long-term uptrend.
“Mid-year outlook [on] crypto assets – A common theme in cryptos is to embrace the bear and build a better financial system, especially from the institutional and long-term oriented, similar to the dotcom bubble burst of 2000- 02. Excess purge was the state of all risky assets in 1H.
While many crypto bulls fear the Federal Reserve for its potential to weigh down digital assets with hawkish monetary policy, McGlone says that from now on, the Fed may end up having to become dovish again in the face of a struggling stock market.
He shares a chart from Bloomberg showing the S&P 500 potentially at a place where reversals have historically occurred.
“The respite for the struggling US stock market may be just a few policy meetings from the Federal Reserve.”
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