BTC Could Rise As It Proved Its ‘Digital Assurance’ Status Says Bloomberg’s McGlone2 min read
Although BTC is still far from the all-time high reached in November 2021, the asset, according to experts, is showing divergent strength, especially when compared to the stock market.
Bloomberg Senior Commodity Strategist Mike McGlone, for example, highlighted that markets are much further behind BTC in showing a recovery from the Russia-Ukraine crisis.
Furthermore, McGlone said that “Digital Gold” is about to triumph. However, the analyst noted that BTC will be subject to deflationary pressures after the peaks of 2021. Therefore, in the short term it could still fall before starting a new bullish cycle.
“BTC at $40,000 or Nasdaq 14,000? Digital gold set to prevail. BTC faces deflationary forces after 2021, but the cryptocurrency shows divergent strength. With 2022 losses less than half of the Nasdaq 100’s losses, BTC could be maturing towards global digital collateral,” he said.
On February 24, following Russia’s invasion of Ukraine, there was a brief drop in the value of BTC. However, McGlone noted that while there are downside risks present, the drop provided a “very good buying opportunity” for the long term.
“I don’t think BTC goes much below $30,000. It is holding good resistance around $40,000. I think it will ultimately be a very good buying opportunity for long term traders. It will be seen in history as a defining moment,” he said.
As the analyst highlighted, as a result of the geopolitical tensions surrounding the Russian invasion, BTC trading has reached its highest level in nearly two years. This indicates that cryptocurrency is being used as a hedge for different purposes during the current crisis.