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Bloomberg Commodity Strategist Issues Positive View of Bitcoin

The majority of market players are intently focusing their attention on the direction that the cryptocurrency industry is going to take in the next months as the negative trends saw in the first half of 2022 continue into the second half of the year. According to Bloomberg’s senior commodities analyst Mike McGlone, who is quoted in this passage, Bitcoin’s losses over the first half of the year might serve as a foundation for investors.

On July 6, McGlone offered his opinion about the current price movement in a tweet. He claimed that, based on the prior surging underpinnings, the present price movement may be profitable to investors who are responsive.

The market as a whole must accept the present market downturn in order to facilitate the development of a robust monetary system, as the strategist emphasized many times. According to McGlone, the present state of affairs is comparable to the bursting of the internet bubble that occurred in the early 2000s.

“A common theme in cryptos is to embrace the bear and build a better financial system, notably from the institutional and longer-term focused, akin to 2000-02’s bursting internet bubble.
Purging the excesses was the state of all risk assets in 1H<…> Bitcoin’s discount to its 50- and 100-week moving averages similar to past foundations, risk vs. reward is tilting toward responsive investors in 2H,”
said McGlone.



After predicting that Bitcoin and gold will likely continue to dominate the markets for the remainder of the year, McGlone has provided his most recent analysis on the digital currency Bitcoin. He made the observation that dominance would develop in the event that the stock market continued to fall as a direct result of monetary efforts conducted by the Federal Reserve, such as increased interest rates.

However, Bitcoin and wider markets have responded poorly to the present context of high inflation, putting an end to the idea that the most prominent cryptocurrency is a hedge against inflation. The precipitous decline in the price of bitcoin resulted in the asset posting its worst quarter during Q2 2022 with returns of -56%.

Despite the generally optimistic forecasts for the industry, many influential market participants think that the cryptocurrency business is currently in a precarious position.

According to Finbold’s reporting, Saxo Bank of Denmark came to the conclusion that the cryptocurrency industry is still at a fork in the road. The bank made the observation that the broad market rally would be contingent on shifts in the general macroeconomic attitude, as well as changes in the regulation and institutional acceptance.

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