Bloomberg analyst predicts the bitcoin rate to rise in the next six months

According to Mike McGlone, the market is showing signs similar to the conditions that preceded the rebound in early 2019

07.07.2022 - 15:00

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What’s new? Bloomberg's senior commodity analyst Mike McGlone believes the bitcoin price will rebound in the second half of 2022. In his opinion, this is indicated by Bloomberg's Galaxy Crypto Index (BGCI) as well as the 50- and 100-week moving averages (MA) of the first cryptocurrency's price. McGlone noted that the current indicators show signs similar to the bottom of the bear market in 2018, which preceded a strong rebound in the first half of 2019.

#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

BGCI was created by Bloomberg in collaboration with investment firm Galaxy Digital and is designed to reflect the state of the cryptocurrency market. The index basket includes assets such as BTC, ETH, XRP, BCH, EOS, LTC, DASH, XMR, ETC and ZEC.

MAs show the average price of an asset over a certain period of time.

What else does McGlone say? According to the analyst, two outcomes are possible: either bitcoin will go the way to “one of the greatest bull markets in history,” or the cryptocurrency market will continue to fall, which will scare off investors. McGlone believes that the likelihood prevails that the first cryptocurrency will continue to rise in popularity.

He noted that current market conditions have been largely shaped by the tight monetary policy of the US Federal Reserve System (Fed), which raised interest rates several times in an attempt to curb inflation. The market was also affected by geopolitical factors and international regulation, the expert said.

In late June, McGlone noted that the sharp decline in risky assets could develop into a phase of deflation in the financial sector, which would contribute to the growth of bitcoin and gold.

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