Bitcoin is Trading at a Deep Discount – Bloomberg Analyst Mike McGlone
Bitcoin, according to Bloomberg Senior Analyst Mike McGlone, is selling at a significant discount and has the potential to become worldwide collateral. As per Forbes, McGlone focused heavily on a 100-week moving average technical analysis. Bitcoin touched its all-time low price relative to the 100-week moving average in July.
According to McGlone, this indicates that the stock is selling at a “deep discount in a sustained bull market.” The senior commodities analyst also discussed the Federal Reserve’s decision to raise interest rates in response to inflationary pressure and what it may imply for the numero uno crypto.
He said that cryptos profited from the historically low-interest rates of 2021, so it’s no surprise that they’re also harmed by the rate increase. Nonetheless, he thinks that Bitcoin and Ethereum’s performance may soon overcome the rate rises and grow nonetheless, as multiple factors indicate to the potential of a bull market.
He stated, “Bitcoin is on course to becoming worldwide collateral in a world moving that route,” and that Ethereum is a driving force of the digital revolution since it enabled the most commonly traded cryptocurrencies — dollar tokens.
He also elaborated on the significance of the Puell Multiple, saying that it now represents a buy signal. To assess the extent of mining-generated BTC selling pressure, the Puell Multiple is calculated by dividing the USD value of Bitcoin’s daily issuance by its 365-day moving average.
Now that it’s below 0.5, investors have a solid buy signal. By all accounts, Bitcoin is on the verge of a breakthrough, as seen by the aforementioned data. Moreover, other stakeholders share the same viewpoint. Budd White, chief product officer of crypto software business Tacen, feels Bitcoin is “very undersold and in a significant accumulation zone.”
He continued, saying that despite the fact that Bitcoin is now trading at over $20,000, it has shown its strength by forming a bottom around $18,000. This might be due to the fact that the markets have already factored in the impact of a potential Fed rate rise.
There has been an uptick in investor optimism thanks to the cryptocurrency’s success. Fear prevails, as measured by the Crypto Fear & Greed Index, which is now at 31. This is a long cry from the 19th of June, when the terror level was 6 out of 6.