• Bitcoin as a global security
• Ethereum drives the digital revolution worldwide
• Price drop as an extreme discount in the bull market
In a digitized world, Bitcoin is on the way to becoming a global digital security, Mike McGlone told Forbes. However, he almost sees even greater potential for Ethereum: “Ethereum is a main driver of the digital revolution, which is reflected in the fact that it enables the most traded cryptos – dollar tokens,” he told the magazine.
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Bitcoin and Ethereum: Has the bottom been reached?
Mike McGlone blames macroeconomic and geopolitical factors such as inflation, the Ukraine war and the energy shortage for the crypto winter and particularly emphasizes the key role of the significant interest rate increases by the Fed. “The bottom line is that there are few stronger forces in the markets than when the stock market is falling at a rapid rate, as it has been in the first half of the year,” he told Forbes of Bitcoin’s price decline.
McGlone bases his reasoning on technical analysis, among other things, and in particular on the 100-week moving average. As a result, he concludes the current low represents an “extreme discount within an ongoing bull market.” Furthermore, the Bloomberg analyst highlights the increasing correlation between the stock market on the one hand and Bitcoin and altcoin prices on the other.
Budd White, co-founder and CPO of crypto software company Tacen, goes even further when he notes that Bitcoin is currently trading below its true value and is in a “large accumulation zone”. Therefore, with every price increase, not only the market value but also the utility value: The ratio of market value to realized value suggests that the market value of Bitcoin has fallen to its actual utility value.
“This also suggests to me that due to the massive liquidations we’ve seen over the last few months for Terra, Three Arrows and many others, the number of forced sellers left in the market is relatively small. Bitcoin therefore appears to be a fairly stable one bottom at or around $18,000,” Budd White told Forbes.
Better mood scores
The mood on the market is also improving: in the Fear & Greed Index from alternative.me, the moods and emotions on the crypto market for Bitcoin and Co. are summarized in a number between 1 and 100, which is updated daily: the lower the number, the larger it is Fear. In July, for example, the index was 15 (“extreme fear”), meanwhile, on August 16, it is 44 (“fear”), although it had increased weekly. For comparison, in August a year ago the index fluctuated between values of 70 and 80. This could indicate a trend reversal, but compared to the sentiment values from the previous year there is still plenty of room for improvement.
Is the Biggest Bitcoin Rally Coming Soon?
In fact, in an interview with Cointelegraph posted on Twitter, McGlone predicted what is likely to be the biggest economic turnaround this year and what could become the biggest Bitcoin rally to date.
#Bitcoin, #crypto‘s place in what may be early days for the great reversion beginning in 2022.https://t.co/eyWIu8fYfS
– Mike McGlone (@mikemcglone11) August 8, 2022
In the second half of 2022, Bitcoin will develop into a low-risk investment, since the speculative bubble that built up in 2021 in particular has now been eliminated. McGlone continues to assume that despite the severe economic crisis, Bitcoin will not fall further, unlike the stock market. On the contrary: The Bloomberg expert sees the crypto veteran as the winner of the upcoming global recession. Together with government bonds and gold, Bitcoin will shine and experience further heights.
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