Mike McGlone, Senior Commodity Strategist at Bloomberg, believes Bitcoin (BTC) could bottom out in the same way it did before the 2019 bull run, but said there’s a big difference this time.
During an interview with crypto podcaster Scott Melker on Jan. 16, McGlone argued that unlike in 2018 when financial institutions like the Federal Reserve cut interest rates, this time they would still hike along with “every central bank.”
“By then the Fed was already easing and we held the bottom and broke higher and then we had this problem in 2019,” he said.
“Right now they are tightening aggressively so watch this and don’t get too excited for the markets. Give yourself some time. Big picture, yes, really bullish bitcoin,” McGlone added.
Chart shared by McGlone showing Bitcoin market prices. Image: Youtube
McGlone also warned that BTC may not see the projected surge just yet amid challenging macroeconomic conditions and pressure from rate hikes.
He believes the NASDAQ is likely to break below its 200-week moving average, which he thinks is another indication that BTC’s price rally may not happen any time soon.
“Liquidity is still being withdrawn and if NASDAQ collapses, everything collapses, bitcoin will be a part of it.”
“I still think it’s going to come forward, so here we are,” he added.
Related: Arthur Hayes: Bitcoin hit bottom when ‘everyone who could go bankrupt has gone bankrupt’
McGlone also said the market had entered an “unprecedented” environment “where we have rallies in bear markets that we know are bear markets and the Fed just says we’re sorry we’re punching the punch.” take away, we won’t give them back for you.”
“I still think we’re in the midst of the biggest macroeconomic reset of our lives, we’ve just had a 100-year event in relation to the pandemic, we’ve got a historic war in Europe and we’ve got a historic shift in political leadership in China,” he added.
“I mean, it goes back to Soviet times when you had a leader and assumed you were economically viable.”
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