TLDR:
- Bloomberg Intelligence Senior Commodity Strategist Mike McGlone says Bitcoin is trading at a significant discount.
- McGlone highlights several observations in making his case, including technical analysis focused on key indicators such as the 100-week moving average.
- McGlone emphasized the important role of the Federal Reserve in stock and cryptocurrency prices.
- Bitcoin is currently trading at $23,203.64, down 66.4% from its all-time high, according to CoinGecko.
Bitcoin and other cryptocurrencies are trading at deep discounts, according to McGron, senior commodity strategist at Bloomberg Intelligence.
Bitcoin is currently trading about 66.4% lower than its all-time high on November 10 last year, but is still one of the most valuable digital assets in the cryptocurrency space in terms of market value. .
according to forbes, McGlone’s observations come from technical analysis that focuses on a particular indicator. Bitcoin has hit an all-time low against its 100-week moving average, McGlone continued, explaining that the currency is at an “extreme discount amid a perpetual bull market.” I’m here.
Bloomberg analysts say the role of the Federal Reserve should not be underestimated.
‘Don’t fight the Federal Reserve’ has been my motto with risk assets since late last year,” McGlone said.
“Bitcoin and cryptocurrencies were an important part of the 2021 rush and therefore part of the 2022 flash, but I think Bitcoin and Ethereum will come out first.”
“Bitcoin is becoming the global digital collateral in a world where the world is going that way. And it’s a major driver of the digital revolution,” McGron told Forbes.
Market is resilient at $18,000
Other big names in the industry have also weighed in on the issue, including Bud White, co-founder of cryptocurrency firm Tacen. White’s opinion is that bitcoin is not only oversold, it is currently in the accumulation phase.
If we look at Bitcoin’s Market Value to Realized Value (MVRV), it is around 1, indicating that the market value of this asset has fallen to its actual utility value. forbes.
This value comes after major liquidations in the industry, such as the Terra collapse, the liquidation of 3AC, and most recently Elon Musk’s $1 billion sale of Tesla.
Markets appear to be pricing in more aggressive monetary tightening as a result of the surge in numbers, White said. While this could suggest that the cryptocurrency market will decouple from stocks, White does not rule out that bitcoin could fall further.
“I am not saying that Bitcoin is decoupling from stocks. Certainly, when it comes to the price of Bitcoin, there could be another drop.”
“However, this relative strength indicates that a large portion of Bitcoin sales may be lagging. Sex shock aside, I think investors still see Bitcoin as a decent buy at these levels,” White said.
Bitcoin in accumulation stage
Bitcoin is currently trading at $23,203.64, according to coin geckoand has hovered below 25,000 since June, suggesting that digital assets may be in the accumulation phase.
Trading down 66% from all-time highs in 2021, it’s important to note that the decline in stocks and cryptocurrencies may not yet be clear. There are still macroeconomic and geopolitical pressures that may cause investors to further withdraw from crypto assets. Recently, all eyes have been on how his Fed will respond to skyrocketing inflation and potential recession threats.
However, many experts believe the “bad news” may already be priced in and investors will continue to see the uptrend in the short term.
