Senior Bloomberg analyst Mike McGlone is forecasting a risk vs reward reversal for Bitcoin (BTC) and the crypto markets.
McGlone says BTC could either be one of the strongest rising markets ever during the second half of the fiscal year or end up becoming a failing experiment.
“Bitcoin could be one of the greatest bull markets in history at a relatively discounted price to start [the second half of the year]. Or the crypto may be a failing experiment in the process of being made redundant, like crude oil. Our bias is [that] Bitcoin adoption is more likely to continue rising.”
The analyst says the Bloomberg Galaxy Crypto Index, which measures the performance of the largest digital assets traded in the US Dollar, is nearing similar levels as the 2018 BTC bottom, which could be a favorable sign for investors in the second half of the fiscal year.
“With the Bloomberg Galaxy Crypto Index nearing a similar drawdown as the 2018 bottom and Bitcoin’s discount to its 50 and 100-week moving averages similar to past foundations, risk vs. reward is tilting toward responsive investors in [the second half].”
According to McGlone, there’s still some downside potential left for the crypto markets. However, he expects digital assets to eventually continue their ascent.
“What stops the proliferation of crypto dollars? The about 80% drawdown in the Bloomberg Galaxy Crypto Index is indicative of limited further downside and the proliferation of crypto dollars…
That two of the top four cryptos listed on Coinmarketcap on July 5 are stablecoins tracking the greenback is indicative of a bear market and the potential for crypto dollars to continue their ascent.”
Bitcoin is changing hands at $21,900 at time of writing, a 3.7% increase on the day.
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