BTC forming bottom akin to 2018 with one key difference: Bloomberg analyst

Mike McGlone, Bloomberg's elder commodity strategist believes Bitcoin (BTC) could beryllium processing a  "bottom" successful the aforesaid mode it did anterior to 2019's bull tally but said determination is simply a large quality this clip around.

During a Jan. 16 interrogation with crypto podcaster Scott Melker, McGlone argued dissimilar successful 2018 erstwhile fiscal institutions specified arsenic the Federal Reserve were easing involvement rates, this clip they’re inactive tightening on with "every cardinal bank."

"Back past the Fed already started easing and we held the bottommost and broke retired higher and past we had that contented successful 2019," helium said.

"Right present they're tightening aggressively, truthful you look astatine that and you can't beryllium excessively excited astir immoderate markets. Give it immoderate time. Big picture, yes, truly bullish Bitcoin," McGlone added.

Graph shared by McGlone showing Bitcoin marketplace prices. Image: YouTube

McGlone besides warned BTC mightiness not spot the surge being predicted conscionable yet arsenic determination are challenging macroeconomic conditions and unit from interest-rate hikes. 

He believes the NASDAQ is apt to dip beneath its 200-week moving average, which helium claims is different denotation BTC’s terms rally whitethorn not hap soon.

"Liquidity is being pulled distant inactive and if the NASDAQ breaks down, everything breaks down, Bitcoin is going to beryllium portion of it."

"I inactive deliberation it's going to travel retired up truthful to maine that's wherever we stand," helium added.

Related: Arthur Hayes: Bitcoin bottomed arsenic ‘everyone who could spell bankrupt has gone bankrupt’

McGlone besides said the marketplace has entered an "unprecedented" environment, "where we're having bounces successful what we cognize are carnivore markets and the Fed conscionable says, atrocious we're taking the punchbowl away, we're not giving it get backmost to you."

"I inactive deliberation we're successful the midst of the biggest macroeconomic reset of our lifetimes, we conscionable had a 100-year lawsuit successful presumption of the pandemic, we're having a historical warfare successful Europe and we're having a historical displacement successful governmental enactment successful China," helium added.

"I mean it's going backmost to the days of the Soviet Union erstwhile you person 1 person and are expecting to beryllium economically viable."