As the value of Bitcoin continues to plummet, many people see a further decline in the coming weeks. However, a Bloomberg analyst, Mike McGlone, is confident that the leading cryptocurrency’s price will rebound later this year.
According to McGlone, the second half of 2022 is the ideal time for Bitcoin to make a recovery, which is on the way.
The Price of Bitcoin Is Looking to Recover
The Bloomberg strategist shared his views of the current market situation on Wednesday, analyzing the likely outcome for his Twitter followers. McGlone revealed positive signals from Bloomberg’s Galaxy Crypto Index (BGCI) data and the 50 and 100-week moving average of Bitcoin’s price.
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McGlone points out that the latest BGCI data showed a similar pattern to the previous bear market in 2018. As suggested by the analyst, this pattern was followed by a strong rebound in the first quarter of 2019.
As a result, the reward is beginning to tilt toward investors who show resilience amid the raging bloodbath in the crypto market.
The BGCI model is a tool designed to measure the performance of the top digital assets in order to know the general market performance. Here, moving averages are used to determine the average price of a given crypto asset over a specific period.
McGlone posited that his bias is toward the increased adoption of Bitcoin and that it will likely rise more than before. However, according to the Bloomberg strategist, the data may indicate two scenarios.
The first is that Bitcoin will likely enter its greatest bull period at the start of Q2. At the same time, the other likely scenario is that the data may indicate a potential crypto market collapse to scare investors. He believes that the first outcome is likely to happen.
#Bitcoin could be one of the greatest bull markets in history at a relatively discounted price to start 2H. Or the crypto may be a failing experiment in the process of being made redundant, like #crudeoil. Our bias is Bitcoin adoption is more likely to continue rising pic.twitter.com/qtLRR6isXF
— Mike McGlone (@mikemcglone11) July 6, 2022
Crypto Washout Could be Another Internet Bubble
According to McGlone, the current crypto bloodbath is similar to the internet bubble in the 2000s. The internet bubble led to the winding up of many firms and the emergence of the likes of eBay and Amazon.
However, McGlone noted that the actions of the Federal Reserve have largely contributed to the bearish condition in the crypto market. The Fed’s monetary policies and attempts at controlling inflation have caused more harm to the crypto-assets industry.
This year has been challenging for Bitcoin and the broader crypto market. Several macroeconomic factors have negatively impacted the crypto and equity markets; the Russia-Ukraine war set the pace for what later became a global financial crash.
Meanwhile, most crypto firms struggle to maintain profits by slashing their workforces amid the market turmoil. Worse still, most industry players have worsened the current situation due to their bearish sentiments. McGlone believes that industry players’ negative sentiment toward cryptocurrency revival discourages interested investors.
The previous crypto winter, which took place in 2018, was one of the worst in crypto-assets history. However, there is a general feeling that the industry will bounce back from the current slump, and investors will flood the market again.