Bitcoin may be one of the largest beef markets, says Bloomberg analyst
Bitcoin may be one of the largest bull markets in history at a relatively reduced price to start 2H (second half). Or the crypto may be a failed experiment in the process of becoming redundant, like crude oil, said Bloomberg’s commodity strategist and analyst Mike McGlone.
“Our bias is that it is more likely that Bitcoin adoption will continue to rise,” he said in a series of tweets sharing views on the world’s best and most popular cryptocurrency Bitcoin.
Speaking about the prospects for cryptocurrencies in the middle of the year, McGlone said – “A common theme in crypto is embracing the bear and building a better financial system, especially from an institutional and long-term focus, akin to the 2000-02s bursting internet bubble. was the state of all risk assets in 1H. “
“What is stopping the spread of #cryptodollars? The decline of around 80% in the Bloomberg Galaxy Crypto Index indicates limited further disadvantages and the spread of cryptocurrencies. Our graphics show a top consistency in crypto, the increasing symbolization of the dollar,” he said.
With the Bloomberg Galaxy Crypto Index approaching a similar decline as the 2018 bottom and Bitcoin’s discount on 50- and 100-week moving averages similar to previous foundations, risk tilts vs. reward against responsive investors in 2H, according to McGlone.
The crypto industry has been shaken by a number of collapses in recent months, including the failure of so-called stablecoin TerraUSD, a large US-based lender Celsius network that stops withdrawals and the Singapore-based crypto hedge fund Three Arrows Capital which is going into liquidation.
Bitcoin is down 58% during the first six months of 2022, hovering around $ 20,000 at the moment, the worst first half of the year ever showing when digital assets have worn off.
Crypto miners are struggling to repay debts and complete large purchase orders of expensive miners they made during the bull run several months ago.
Bitcoin miners have been forced to take advantage of their cryptocurrency holdings as a plunge in prices, rising energy costs and increased competition bite into profitability. Miners who need to sell may weigh on Bitcoin’s price for some time, JPMorgan Chase & Co said in a note last month.
The views and recommendations above are from individual analysts or brokerage firms, and not from Mint.
