Bloomberg Analyst: Bitcoin Is A ‘Wild Card’ Set To Outperform – Bitcoin Magazine

Bloomberg Analyst: Bitcoin Is A ‘Wild Card’ Set To Outperform – Bitcoin Magazine

The senior commodity analyst for Bloomberg anticipates that the price of bitcoin will bottom out somewhere around $20,000.

According to the findings of the Bloomberg Crypto Outlook Report, shifts in the Federal Reserve's historically restrictive monetary policy could lead to increased bitcoin prices.
The analysis highlights the decreasing quantity of bitcoin as the reason for why its value is anticipated to increase over the course of time.

Mike McGlone, a senior commodity analyst at Bloomberg, recently released a study on LinkedIn titled "Bloomberg's Crypto Outlook" in which he discussed bitcoin's potential for a subsequent bull run in relation to the overall economy.

According to what is written in the research, "Bitcoin is at a discount inside an extended bull market."

In addition, the research adds that the Federal Reserve will soon have to change its current monetary strategy of quantitative tightening because it is only a matter of time before it will be forced to do so. At that time, bitcoin, due to its poor performance in the current market, is positioned to be the principal benefactor of any positive developments.

In a nutshell, huge amounts of borrowed cash have a tendency to flow into traditional assets if it appears that the increase in interest rates has returned to normal levels and large sums of borrowing funds have returned.

In a recent interview on Bell Media, McGlone elaborated further on this idea, expressing the following:

Bitcoin and other cryptocurrencies will continue to outperform the majority of traditional assets despite experiencing lower levels of volatility, as this is what they do best.

The report that was referenced earlier offered an explanation that was both clear and succinct for the decreasing volatility of bitcoin as well as the inevitability of its increasing value over the course of time as a result of basic economics. This was done in order to further elaborate on the decreasing volatility of bitcoin.

According to what is written in the research, "[Bitcoin's] volatility is diminishing with greater use and engagement." "This is occurring at the same time as supply is decreasing, which, according to the rules of economics, means that prices will gradually increase over time."

Thus, McGlone sees a bottom for bitcoin as the Federal Reserve changes direction in future monetary policy, which somehave suggested will begin to happen early 2023.

“I fully expect bitcoin to bottom out maybe around $20,000

or maybe a bit lower like it did in 2018 and like it did in 2013,” the strategist explained in the interview. 

Chris Eberechi

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